To open long positions on GBP/USD you need:
Theresa May will hold another vote on the ratification of the Brexit agreement this week in Parliament, and if it is adopted, the UK will leave the EU on May 22. If not, the deadline is April 12th. Volatility provided. Buyers need to stay above 1.3178, and the formation of a false breakdown there will be a signal to buy. If the pound's downward movement resumes, it is best to return to long positions after updating the low around 1.3136 or to rebound from the support of 1.3083. A breakthrough and consolidation above 1.3222 will be another signal to increase in long positions based on the test highs of 1.3266 and 1.3316, where I recommend taking profits.
To open short positions on GBP/USD you need:
Sellers of the pound will try to form a false breakdown in the area of a resistance of 1.3222, but the main goal will be a breakout and consolidation below the support of 1.3178, which will lead to selling GBP/USD to the area of lows of 1.3136 and 1.3083, where I recommend to lock in profits. When the growth scenario is above 1.3222 in the first half of the day, good resistance levels will be seen in the area of 1.3266 and 1.3316, from where you can open short positions immediately to rebound.
Trade is conducted above the 30-day and 50-day moving averages, which indicates the formation of a bullish scenario.
In case of an attempt to raise the pound's rate, the upward potential of the Bollinger Bands indicator will be limited to around 1.3222. In case the pound falls, support will be provided by the lower limit in the area of 1.3150.
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