GBP/USD: plan for the European session on February 27. The pound rose after May's agreement to postpone Brexit

To open long positions on GBP/USD you need:

The British pound continues to strengthen following British Prime Minister Theresa May's to which she agrees to extend the UK's exit date from the EU, if the Parliament agrees. Today, buyers will show themselves after the correction of the pound to the support area of 1.3211, but the main task will be a breakthrough and consolidation above the high of 1.3282, which will open a direct road to the area of 1.3348 and 1.3383, where I recommend taking profits. In the event of a larger downward correction, long positions in GBP/USD can be considered immediately to rebound from a low of 1.3149.

To open short positions on GBP/USD you need:

Sellers need another formation of a false breakdown in the area of resistance of 1.3282, with confirmation of divergence on the MACD indicator, which is now being formed there. This will lead to a deeper downward correction in the area of lows at 1.3211 and 1.3149, where I recommend taking profits. When scenarios of further growth with the trend, you can open short positions from a high of 1.3348 and 1.3383.

Indicator signals:

Moving averages

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

Bollinger bands

The break of the upper border of the Bollinger Bands indicator near 1.3285 will lead to a new wave of growth of the pound. In the event of a decrease in the pound, support will be provided by the lower limit of the indicator in the region of 1.3200.

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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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