To open long positions on GBP/USD you need:
Boris Johnson's attempt last Saturday to hold a vote in the House of Commons over his deal failed. Yesterday's attempt was blocked. Everything has been postponed to today. Therefore, the volatility of the pound is unlikely to be high until any news in this direction appears. A break and consolidation above the resistance of 1.3037 will be possible only after the news that the deal has been approved. In this scenario, we can expect further strengthening of the pound to the highs of 1.3074, 1.3167 and 1.3227. Any negative background will put pressure on GBP/USD, so only the formation of a false breakout in the support area of 1.2946 will be a signal to buy the pound. In a different scenario, the pair will decline for this support, and long positions can be returned to the rebound from lows of 1.2842 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 1.3037 will be the first signal to sell the pound. Without specifics on Brexit, I do not recommend opening short positions on the pound, because if the deal is approved, the pair can strengthen by another 300-400 points. The more important task of the bears today is to return and consolidate the pair below the support of 1.2946, which will push the pound to lows of 1.2842 and 1.2664, where I recommend profit taking. However, such a downward movement will be possible only if the opponents of the current Brexit in Parliament again do not allow Johnson to vote by his deal, and even worse - if the vote turns out to be a failure. In case the pound further grows above the resistance of 1.3037, you can look at short positions after testing the highs of 1.3167 and 1.3265.
Signals of indicators:
Moving averages
Trading is conducted above 30 and 50 moving averages, which indicates the maintenance of a bullish trend.
Bollinger bands
Volatility has greatly 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
