To open long positions on GBP/USD you need:
The British pound continues to be traded in the side channel of 1.3055-1.3205, going beyond which will determine the pair’s direction. Today’s vote on the Brexit bill may help, but the market will respond more clearly to statements by British Prime Minister Boris Johnson. The bulls need a return to the middle of the channel at 1.3130, a breakthrough of which will ensure growth in the region of the upper boundary of 1.3205, where I recommend taking profits. If pressure on the pound persists further, I recommend taking a closer look at long positions only after a false breakout is formed in the support area of 1.3055, and it is best to buy GBP/USD for a rebound near the new lows 1.3015 and 1.2971 with an upward correction of 30-35 points. A break of the upper boundary of 1.3205 will ensure that the bulls win in this situation, which will quickly return the pair to the highs of 1.3282 and 1.3348.
To open short positions on GBP/USD you need:
Important fundamental statistics are not published today, and the whole emphasis will be reduced to the discussion in the British Parliament of the bill on Brexit. The formation of a false breakout and unsuccessful consolidation in the first half of the day above the resistance of 1.3129 will be a signal to open short positions in the pair. A more important task will be a breakthrough and consolidation under the lower boundary of the side channel at 1.3055, which will quickly push the pound to the lows of 1.3015 and 1.2971, where I recommend taking profits. In a GBP/USD growth scenario above resistance at 1.3129, it is best to return to short positions to rebound from the upper boundary of the side channel at 1.3205, or after a test of the high of 1.3282, with the aim of a downward correction of 25-30 points.
Signals of indicators:
Trade is conducted in the region of 30 and 50 moving average, which indicates the lateral nature of the market.
In the event of a decline, the pound will be supported by the lower boundary of the indicator at 1.3087, the break of which will increase the pressure on the pair. A break of the upper boundary at 1.3150 will lead to a larger upward trend.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence – moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
The material has been provided by InstaForex Company – www.instaforex.com