To open long positions on GBP/USD you need:
A few days ago, the British government announced a new Brexit plan, the essence of which was the absence of customs points on the border between Ireland, which was what the EU representatives wanted. However, rumors appeared yesterday that the EU is unlikely to be able to trust this proposal and agree to it. Against this background, the pound lost its position, having failed to break above the resistance of 1.2400, from which I recommended opening short positions yesterday. At the moment, the bulls need to protect the support level of 1.2313, and the formation of a false breakdown on it will be a direct signal to open long positions in the calculation of a break and consolidation above the resistance of 1.2364. Only such a scenario will provide GBP/USD with a new wave of growth to a high of 1.2406, where I recommend taking profits. If the bulls miss the support of 1.2313, it is best to count on new long positions on a rebound from a low of 1.2263.
To open short positions on GBP/USD you need:
Bears showed themselves in the region of a high of 1.2400, and also formed an additional intermediate resistance level of 1.2364. The formation of a false breakdown on it in the morning will be a direct signal to open short positions in order to break through and consolidate below the support of 1.2313, which will provide the pair with new sellers that can return the pound to a low of 1.2263, where I recommend taking profits. If the bulls manage to break above resistance at 1.2364, consider new short positions from the upper boundary of 1.2406-1.2410.
Signals of indicators:
Moving averages
Trade is conducted above 30 and 50 moving averages, which indicates a possible continued growth of the pound.
Bollinger bands
In case the pound declines, support will be provided by the lower boundary of the indicator in the region of 1.2300, while the upper boundary of the indicator in the region of 1.2406 will act as resistance.
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
