To open long positions on GBP/USD you need:
Pound buyers may have problems. The results of the vote for the post of the prime minister of Great Britain will be announced today, which might be the supporter of a hard Brexit, Boris Johnson. His first statements can seriously affect the pound’s medium-term rate. Therefore, it is best to open long positions after updating a larger local low in the 1.2383 and 1.2342 areas. The formation of a false breakdown in the first half of the day in the 1.2431 area is unlikely to have any significant effect on the current technical map in the pair. The main task of buyers of the pound will be to return and consolidate above the resistance of 1.2475 with an update of the high of 1.2509.
To open short positions on GBP/USD you need:
The pound can jump up even after it becomes known that Boris Johnson won, as this result is expected by most analysts. In this scenario, it is best to consider short positions in the pair after a false breakdown in the resistance area of 1.2475, or to rebound from a weekly high in the area of 1.2509. However, you need to understand that Johnson’s victory in the elections will bring nothing good to the pound and the trend will continue down. A break of 1.2431 support will put even more pressure on the pair, which will lead to the renewal of lows of 1.2383 and 1.2342, where I recommend taking profits.
Trade is conducted below 30 and 50 moving averages, which indicates the possible preservation of the downward movement.
The pound’s growth will be limited to the upper boundary of the indicator around 1.2490, from where you can watch sales in the morning.
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