To open long positions on GBP/USD, you need:
Despite the uncertainty that is now observed in the market, buyers of the pound remains a high chance of buying. However, much will depend on the decision of the EU to grant an extension. If a delay of 1-2 weeks is a bullish signal, and a break of resistance of 1.2923 will lead to a larger upward movement to weekly highs of 1.3012 and to their renewal in the area of 1.3074, I recommend taking profit. But if the EU refuses to grant a respite for such a short period, this is a bearish signal. Therefore, in the case of a decline in GBP / USD, it is best to count on purchases after the formation of a false breakdown in the support area of 1.2842 or after a decline and test of large lows 1.2757 and 1.2664.
To open short positions on GBP/USD, you need:
The sellers are still satisfied with the current Brexit news, but the EU is required to meet Boris Johnson and approve a short delay of 1-2 weeks. The main task for the first half of the day is to break the support of 1.2842, which will lead to the demolition of a number of stop orders and a further decline in GBP/USD to the area of lows 1.2757 and 1.2664, where I recommend taking profits. At the same time, when forming a false breakdown at 1.2923, you can also count on selling the pound, but do not forget to stop the orders, as any decision by the EU will lead to a sharp increase in volatility. In case of growth above 1.2923, the nearest large levels will be seen around the areas of 1.3074 and 1.3167.
Indicator signals:
Moving averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates market uncertainty.
Bollinger bands
In case of a decline in the pair, a break of the lower boundary of the indicator in the area of 1.2855 will increase pressure on the pound while a break of the upper boundary in the area of 1.2935 will lead to a new upward wave.
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
