To open long positions on GBP/USD you need:
Yesterday, the British Parliament voted to postpone the withdrawal from the EU, but this was quite expected and did not cause any changes in the market. Buyers need a breakthrough and consolidation above the level of 1.3269, which will lead to growth in the area of a high of 1.3325, where I recommend taking profits. The main task of the bulls will be the test of resistance 1.3375, which will increase the chance for a continuation of the uptrend. A more acceptable scenario for opening long positions on the pound would be a correction to the support area of 1.3177. In case of a sharper fall, you can immediately buy on a rebound from the low of 1.3131.
To open short positions on GBP/USD you need:
Bears will show themselves from a resistance level of 1.3269, and the formation of a false breakdown there will be a signal to open short positions. However, the main task will be to return and consolidate below the support of 1.3225, which will increase the pressure on the pair and lead to a test of the low of 1.3177 and 1.3131, where I recommend taking profits. In case of GBP/USD growth above the resistance of 1.3269, short positions can be opened again for a rebound from the highs of 1.3325 and 1.3375.
Indicator signals:
Moving averages
Trade is conducted in the area of 30-day and 50-day moving averages, which indicates stabilization of the situation and the formation of a side channel.
Bollinger bands
A break of the lower limit of the Bollinger Bands indicator near 1.3225 will lead to a larger decrease in the pound. Breaking the upper border of the indicator in the 1.3270 area may increase demand for GBP/USD.
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
