To open long positions on GBP/USD you need:
Yesterday's resignation of the leader of the House of Commons hit the pound positions, but buyers have a chance for a correction. This requires a quick return to the resistance level of 1.2670, from which you can count on the demolition of a number of sellers' stop orders and a larger increase in GBP/USD in the resistance area of 1.2730 and 1.2789, where I recommend taking profits. In the event of a further decline, according to the trend, it is best to consider purchases under the condition of a false breakdown in the support area of 1.2612 or to rebound from the lows of 1.2564 and 1.2500.
To open short positions on GBP/USD you need:
Breakthrough and consolidation below the support of 1.2612 will lead to a new wave of short positions in GBP/USD with a rise to the lows of 1.2564 and 1.2500, where I recommend taking profits. Under the pound growth scenario in the first half of the day, after the release of retail sales data, selling from a resistance of 1.2670 will be a more optimal scenario, provided there is a false breakdown there, or to rebound from a high of 1.2730. Any positive news on Brexit will lead to a sharp and strong growth of the pound, so do not forget about the placement of stop orders.
Indicator signals:
Moving averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger bands
Volatility has decreased, which does not provide signals for entering the market.
Description of indicators
- MA (moving average) 50 days - yellow
- MA (moving average) 30 days - green
- MACD: fast EMA 12, slow EMA 26, SMA 9
- Bollinger Bands 20
