To open long positions on GBP / USD you need:
Rumors that it is unlikely that the EU will be able to trust the Brexit plan proposed by London, scare away new buyers of the pound. However, from a technical point of view, nothing has changed in the morning. The bulls have already defended the support level of 1.2313, having formed a false breakdown there, and while trading is above this range, we can expect continued growth of GBP / USD, which will lead to a breakthrough and consolidation above resistance 1.2364. Only such a scenario will provide the pound with a new wave of growth to a maximum 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 minimum of 1.2263.
To open short positions on GBP / USD you need:
Only the formation of a false breakdown at 1.2364 will be the first signal to open short positions on the pound in order to break through and consolidate below the support of 1.2313, which will provide the pair with new sellers that can return GBP / USD to a minimum of 1.2263, where I recommend taking profits. If the bulls manage to break above the resistance 1.2364 after the release of the report on the American labor market, new short positions can be considered from the upper border of 1.2406-1.2410.
Indicator signals:
Moving averages
Trading is carried out in the area of 30 and 50 daily averages, which indicates market uncertainty.
Bollinger bands
A breakdown of the upper border of the indicator at 1.2364 will lead to a new wave of pound growth.
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
