To open long positions on GBP/USD, you need:
The British pound continues to grow after the news that British Prime Minister Boris Johnson received the right to vote in the UK Parliament, which takes a step closer to the possibility of a deal on Brexit. Also today, several skeptical representatives of the Conservative Party of the United Kingdom said that they would support the Brexit deal if Johnson manages to negotiate with the EU. Buyers need to break the resistance of 1.2680, which will lead to the demolition of several stop orders and further sharp growth of the pound in the area of highs of 1.2740 and 1.2780, where I recommend taking the profits. In the case of negative news related to the agreement, the fall of the pound may be no less active. In this scenario, it is best to consider buying from a large support of 1.2555, as well as from a larger minimum of 1.2490
To open short positions on GBP/USD, you need:
I do not recommend selling the pound at current levels. Only negative Brexit news, which is currently missing, will return real sellers to the market. While speculative pullbacks and profit-taking, with the break of the resistance of 1.2680, is possible only at the maximums of 1.2740 and 1.2780.
Indicator signals:
Moving averages
Trading is above the 30 and 50 daily averages, which indicates a possible continuation of the growth of the pound.
Bollinger Bands
In the case of decline, the pair will be supported by the lower border of the indicator in the area of 1.2555.
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
