To open long positions on GBP / USD you need:
Yes, yes, but no. Something like that can used to describe yesterday's vote in the British Parliament, where on the one hand - the majority favors the general principles of the deal, and on the other - it takes more time to study it. Despite the uncertainty, buyers have a high chance of purchasing. To do this, it is necessary to maintain the level of 1.2842 and form a false breakout on it today, which will be the first signal to buy the pound. However, a more important goal of the bulls will be to return and consolidate at the resistance of 1.2923, which will lead to a larger upward movement to weekly highs of 1.3012 and to their renewal in the area of 1.3074. In case of further decline in GBP/USD, it is best to count on purchases after the support test of 1.2757, or immediately on a rebound from a low of 1.2664.
To open short positions on GBP/USD you need:
Sellers are satisfied with the current Brexit news. The main task for the first half of the day is to break the support of 1.2842, which will lead to the demolition of a number of stop orders and a further decrease in GBP/USD to the area of lows 1.2757 and 1.2664, where I recommend profit taking. When the bulls return to the level of 1.2923, I do not recommend returning to short positions today. The nearest major levels will be visible in the area of 1.3074 and 1.3167. Further movement of the pound will depend on whether the EU will make concessions to Boris Johnson on the issue of a shorter delay of the UK's exit from the EU, or not.
Signals of indicators:
Moving averages
Trading is carried out below 30 and 50 moving averages, which indicates a continuation of the downward correction.
Bollinger bands
In case the pair grows, the upward movement will be limited by the upper level of the indicator at 1.2965.
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
