To open long positions on GBP/USD you need:
While there is no news on Brexit, the volatility of the pound will continue to remain at a high level. At the moment, buyers need to stay above the support of 1.3061, and the formation of a false breakdown on it will be a signal to open long positions, which will lead to an update of resistances of 1.3106 and 1.3162, where I recommend taking profits. In case the pound further decreases, you can only count on large levels of support around 1.3000 and 1.2950.
To open short positions on GBP/USD you need:
Yesterday's good data on the UK led to a slight upward correction of the pound, which ended with selling after news that the British Parliament rejected several alternatives to the Brexit scenario. At the moment, bears are required to return and consolidate below the support of 1.3061, which will lead to the demolition of the lower boundary of the ascending channel and updating the low in the region of 1.3001 and 1.2950, where I recommend taking profits. If the demand for the pound continues in the first half of the day, you can take a closer look at short positions on the false breakdown from a resistance of 1.3106 or on the rebound from a high of 1.3162.
Trade is conducted in the area of 30-day and 50-day moving averages, which indicates the formation of a side channel.
A break of the lower border of the Bollinger Bands indicator around 1.3035 will lead to selling the pound. Growth will be limited by the middle border of the indicator in the region of 1.3100 and the upper border in the area of 1.3160.
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