To open long positions on GBP / USD, you need:
The pound didn't change much after the news that a political declaration on Brexit was signed by all EU members over the weekend. Breakthrough and consolidation above the resistance level of 1.2835 will be a signal to buy GBP / USD, but a more visible option for opening long positions is around 1.2785-1.2780. The main task at the beginning of this week remains a breakthrough and consolidation above 1.2881, which will lead to the formation of an uptrend. In the case of a decline below the support level of 1.2785, it is best to return to long positions in GBP / USD to rebound from a low of 1.2723.
To open short positions on GBP / USD, you need:
Bears need to stay below 1.2835, and the formation of a false breakout there will be a signal to sell GBP / USD, which will lead to a further decline with the release to the lower border of the side channel 1.2787. A breakthrough of this range will collapse the pound to the lows of 1.2723 and 1.2663, where I recommend taking profits. In case of a rise above resistance 1.2835 in the second half of the day, it is best to open short positions to rebound from a new high of 1.2881.
Indicator signals:
Moving Averages
Trade is conducted below the 30- and 50-day moving averages, which indicates a likely continued decline in the pound.
Bollinger bands
The volatility of the Bollinger Bands indicator is low, which does not give signals to enter 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
