To open long positions on GBP/USD you need:
Boris Johnson's attempt to hold a vote in the House of Commons over his deal has failed last Saturday. The matter did not even reach the very vote, which is again scheduled for today. Therefore, the volatility of the pound is unlikely to be high until any news in this direction appears. Nothing has seriously changed from a technical point of view. A break and consolidation above the resistance of 1.2916 will lead the pair to new local highs around 1.2988, 1.3037 and 1.3074, where I recommend profit taking. Any negative background will put pressure on GBP/USD, so only the formation of a false breakout in the support area of 1.2833 will be a signal to buy the pound. In a different scenario, the pair will fall to a support of 1.2833, long positions can be returned to rebound from the lows of 1.2757 and 1.2664.
To open short positions on GBP/USD you need:
Sellers need bad Brexit news, and the formation of a false breakout in the resistance area of 1.2916 will be an additional signal to sell the pound. However, the more important task of the bears today is to return and consolidate the pair below the support of 1.2833, which will push the pound to the lows of 1.2757 and 1.2664, where I recommend profit taking. However, such a downward movement will be possible only if Labour and Tory again do not allow Johnson to hold a vote on his deal, and even worse if the vote proves to be a failure. In case the pound further grows above the resistance of 1.2916, you can look at short positions after testing the highs of 1.2988, on a false breakout, or on a rebound from 1.3074.
Signals of indicators:
Moving averages
Trading is conducted above 30 and 50 moving averages, which indicates the maintenance of a bullish trend.
Bollinger bands
A break of the lower boundary of the indicator at 1.2845 may put pressure on the pair. Growth will be limited by the upper level at 1.2970.
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
