To open long positions on GBP/USD, you need:
The debate over the Brexit agreement began in London, and buyers of the British pound are gradually leaving the market. The morning support level of 1.2946 could not be held, but the pound also did not reach a major sale. As has been said many times, everything will depend on the results of today’s parliamentary vote. In a positive scenario, a return to the resistance of 1.2950 will be an additional signal to buy the pound, and the new target will be the highs of 1.3037, 1.3125 and 1.3167. With the approval of the Brexit agreement, the option of updating the 32nd and 33rd figures is not excluded. If the pressure on the pound persists in the second half of the day, it is best to return to long positions on a false breakdown from the support of 1.2842 or on a rebound from the larger minimum of 1.2757. In the most negative scenario, GBP/USD may be supported by the area of 1.2664.
To open short positions on GBP/USD, you need:
Sellers coped with the morning task and returned the pair under the support of 1.2946, but the rest Sellers coped with the morning task and returned the pair under the support of 1.2946, but the rest of the movement, as we see on the chart, will depend on the debate that has now begun in the UK Parliament on the Brexit agreement, as well as on the outcome of the vote. A break of 1.2842 support will lead to the demolition of several stop orders and a further decrease in GBP/USD to the area of the lows of 1.2757 and 1.2664, where I recommend taking the profits. When the bulls return to the level of 1.2946, I do not recommend returning to short positions today. The next major levels will be viewed in the area of 1.3074 and 1.3167. However, as noted above, the option of updating the 33rd figure is not excluded.
Indicator signals:
Moving Averages
Trading is below the 30 and 50 daily averages, which indicates a possible correction of the British pound.
Bollinger Bands
If the pound rises and the upper limit of the indicator breaks in the area of 1.2995, it can expect further upward movement along with the trend.
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
The material has been provided by InstaForex Company – www.instaforex.com
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