GBP / USD: plan for the European session on February 26. The pound is reinforced by rumors of a Brexit extension

To open long positions on GBP / USD you need:

The British pound continues to strengthen against the backdrop of optimism that the British Prime Minister Theresa May will be able to reach an agreement on the extension of Brexit, but I do not recommend to rush into purchases. The optimal scenario for opening long positions will be the support test 1.3098, with the formation of a false breakdown on it. Otherwise, you can buy immediately to rebound from 1.3053. If buyers manage to cling to the resistance of 1.3149, and this can happen after the speech of the Governor of the Bank of England Mark Carney in the first half of the day, the demand for the pound will lead to highs around 1.3214 and 1.3261, where I recommend fixing the profits.

To open short positions on GBP / USD you need:

Sellers need the next formation of a false breakdown in the resistance area of 1.3149, with confirmation of the divergence on the MACD indicator. This will lead to a deeper downward correction in the minimum area of 1.3098 and 1.3053, where I recommend fixing the profits. When scenarios of further growth with the trend, you can open short positions from a maximum of 1.3214 and 1.3261. But we must not forget that any negative news on Brexit can seriously affect the customers, forcing them to fix their long positions.

Indicator signals:

Moving Averages

Trade is conducted above the 30-day and 50-day moving, which indicates further growth of the market.

Bollinger bands

A break of the upper border of the Bollinger Bands indicator near 1.3157 will lead to a new wave of pound growth. In the case of a decrease in the pound, support will be provided by the lower limit of the indicator in the area of 1.3053.

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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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