To open long positions on GBP/USD you need:
As I noted in yesterday’s review, the UK Supreme Court ruled that the suspension of Parliament is unlawful, which provided temporary support to the pound. Weak data on consumer confidence in the US pushed the pair even higher in the afternoon, but a larger upward trend was not formed. At the moment, the bulls need to protect the support of 1.2442, and the formation of a false breakdown there will be a signal to open long positions in the expectation of a repeat test of yesterday’s resistance of 1.2499. Going beyond this level will allow GBP/USD to update weekly highs in the region of 1.2570, where I recommend taking profits. If the pressure on the pound persists, and the bulls fail to maintain the support of 1.2442, then it is best to count on new long positions from a low of 1.2385.
To open short positions on GBP/USD you need:
Despite a slight upward correction, trading is carried out in a short-term downward channel. Another unsuccessful attempt of the bulls to cling to the resistance of 1.2499, and the formation of a false breakdown there will be a signal to open short positions with a break of the level of 1.2442. Consolidating below this range will increase the sellers’ chances of a further fall in GBP/USD to a low of 1.2385 and to a larger support level of 1.2323, where I recommend taking profits. Given that important fundamental statistics are not published today, the focus will again be shifted to political differences and Brexit news. In the scenario of a pound growth above the resistance of 1.2499, you can open short positions immediately on the rebound from a high of 1.2569.
Signals of indicators:
Trade in the region of 30 and 50 moving averages, indicating another uncertainty with the direction.
In case of a breakthrough of the lower boundary of the indicator in the region of 1.2450, pressure on the pound will return. Growth will be limited by the upper level of the indicator in the area of 1.2500.
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