To open long positions on GBP/USD you need:
Yesterday, the British pound ignored data on the granting of a deferral of Brexit on exit conditions at any time, with the approval of the agreement by the Parliament, although for buyers of the pound this is a very good signal. The lack of growth suggests the formation of a downward correction in the near future, especially in the conditions of such a smooth reversal of the market that we have been observing recently. Bulls today still need to return to a resistance of 1.2870, which will be a signal to open long positions capable of updating highs 1.2943 and 1.3012, where I recommend profit taking. If pressure on the pound remains in the first half of the day, then only the formation of a false breakout in the support area of 1.2807 will be a signal to open long positions. Otherwise, it is best to buy GBP/USD for a rebound from a low of 1.2735 or even lower, in the area of 1.2664.
To open short positions on GBP/USD you need:
The pound stops responding to good news, and yesterday's failure to vote on general elections confused traders even more, which could lead to profit taking on long positions. The next formation of a false breakout in the resistance area of 1.2870 will be a signal to open short positions in order to break the support of 1.2807, which was formed last Friday. However, a further target will be the level of 1.2735, a breakthrough of which will very quickly pull down GBP/USD to a low of 1.2664, where I recommend profit taking. In the case of positive news from the EU, and a breakthrough of resistance at 1.2870, it is best to consider short positions in GBP/USD from larger highs around 1.2943 and 1.3012.
Signals of indicators:
Moving averages
Trade is conducted in the region of 30 and 50 moving average, which indicates the lateral nature of the market.
Bollinger bands
A break of the lower boundary of the indicator at 1.2830 will raise pressure on the pound.
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
