To open long positions on the GBP / USD pair, you need:
The growth of the pound will be only under the condition that the Cabinet of Ministers of the United Kingdom approves the plan of the preliminary agreement to which the negotiators arrived yesterday. Any news will be actively worked out by the market. In this regard, I do not recommend relying only on technical analysis today. The breakthrough in the resistance of 1.2962 may lead to more active purchases by large players, as well as to an update of the maximum of 1.3040, where I recommend taking profits. In the case of a decrease in the pound on the news on Brexit, support this time be found at the area of 1.2825.
To open short positions on the GBP / USD pair, you need:
Bears need to hold below the resistance of 1.2962, which will lead to a resale to the support area of 1.2891 and its breakdown will only increase the pressure on the British pound. If the British Cabinet of Ministers does not agree with the proposed agreement, it is likely that the fall of the pound will once again begin at a faster rate. In this case, we can expect an update of the minima of 1.2825 and 1.2767, where I recommend to fix the profit. If the GBP / USD growth scenario is above the resistance of 1.2962, you can sell for a rebound from the maximum of 1.3039.
Indicator signals:
Moving averages
Trade is conducted in the 30- and 50-day average, which indicates the lateral nature of the market.
Bollinger bands
Upward correction will be limited by the upper border of the indicator around 1.3039.
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
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