To open long positions on GBP/USD, you need:
The British pound rebounded from annual lows after the news appeared in the media that the Board of the European Commission, led by Jean-Claude Juncker and EU negotiator for Brexit Michel Barnier will consider the situation around the UK's exit from the EU on September 4. Given that the pound was artificially driven to such lows after a rebound to the upside, buyers need to keep the level of 1.2020, which can lead to a larger upward correction in the area of highs of 1.2060 and 1.2107, where I recommend taking the profit. If there is negative news from the British Parliament and the pair returns to support 1.2020, it is best to look at long positions from a minimum of 1.1975 or a rebound from the new support of 1.1935.
To open short positions on GBP/USD, you need:
Any negative news from the UK Parliament and the failure of the opposition's attempts to prevent Brexit without an agreement will return the pound sellers to the market even though the pair has fallen to annual lows. Bears need a breakdown of the support of 1.20199, which will collapse the GBP/USD to the support of 1.1975, from which an upward correction took place today. A breakthrough at this level will lead to an update of the new annual minimum in the area of 1.1935, where I recommend fixing the profits. If the bulls manage to gain a foothold above the resistance of 1.2060 in the second half of the day, it is best to sell for a rebound from the highs of 1.2107 and 1.2143.
Signals of indicators:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a predominance of sellers in the market.
Bollinger Bands
In the case of the pound growth, the upper limit of the indicator in the area of 1.2107 will limit the upward potential.
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
