GBP/USD: plan for the European session on April 3. Theresa May again asks the EU to postpone the UK exit date
To open long positions on GBP/USD you need:
The pound strengthened yesterday on the news that the UK could avoid a hard scenario on Brexit after May said she would ask the EU for another delay. At the moment, it is best to expect long positions after a correction to the first support level, which is seen in the support area of 1.3109. It is best to buy from there provided that there is a false breakdown. Long rebound positions can be opened from a larger low of 1.3071 or from the lower border of the side channel of 1.3030. The main task of the bulls will be a breakthrough and consolidation above the resistance of 1.3165, which will lead to a high of 1.3212, where I recommend taking profits.
To open short positions on GBP/USD you need:
It is possible to consider short positions on the pound after updating the first resistance level in the area of 1.3165, but under the condition that a false breakdown is formed there. Bigger sellers are likely to show themselves around the resistance level of 1.3212. The main task for the first half of the day will be to return and consolidate below the support level of 1.3109, which will lead to a bigger sale in the area of 1.3071 and 1.3030, where I recommend to lock in the profit. However, this scenario will be more likely when a weak report on the services sector in the UK is released or after the appearance of negative news related to Brexit.
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