To open long positions on GBP/USD you need:
The pound continued its growth and strengthened throughout the day, as traders had no doubt that the bill that would not allow Great Britain to leave the EU without an agreement would be adopted, which is what happened. At the moment, buyers have climbed above a rather important support level of 1.2220 and are trying to keep it. The formation of a false breakdown there will be an additional signal to open long positions, which will lead to further growth of GBP/USD already to the highs of 1.2343 and 1.2387, where I recommend taking profits. In case the pound declines, against the background of profit taking after such a large increase, one can count on new long positions for a rebound from supports 1.2161 and 1.2112.
To open short positions on GBP/USD you need:
Pound sellers remain on the sidelines and are in no hurry to return to the market. However, an alarming signal is a return to the level of 1.2219, which cannot be tolerated. Today, bears need to try to return GBP/USD to this range, which may lead to profit taking on long positions and a downward correction of the pair in the support area of 1.2161 and 1.2112, where I recommend taking profit. The government of Boris Johnson will not fight with the adoption of a new bill on Brexit and, most likely, will focus on holding early elections, which are scheduled for October 14. Therefore, in case the pair grows, it is best to consider short positions after the formation of a false breakdown in the region of a high of 1.2281 or sell for a rebound from a resistance of 1.2343.
Signals of indicators:
Moving averages
Trade is conducted above 30 and 50 moving averages, which indicates that the pound could further grow.
Bollinger bands
In case the pound grows, a break of the upper boundary at 1.2270 will lead to a new wave of growth. In the event of a decline, support will be provided by the lower boundary at 1.2170.
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
