To open long positions on the GBP / USD you pair, need:
After a slight downward correction to the support area of 1.2822, buyers returned to the market, and their main task in the second half of the day will be to return and consolidate above the resistance of 1.2890, which will lead to a larger upward trend in the area of 1.2944 and 1.3006 maximum, where I recommend taking profits. Any news from British Prime Minister Theresa May on Brexit could lead to a surge in pound volatility. In the scenario of its further decline, it is best to look at long positions for a rebound from the low of 1.2752.
To open short positions on the GBP / USD pair, you need:
An unsuccessful consolidation above the resistance of 1.2890 will be the first signal to open short positions in the pound but the main task will be a breakthrough to the support level of 1.2822, which will lead to the removal of a number of stop orders of buyers and a larger downward correction to 1.2752 and 1.2679, where I recommend to take profits. In the case of an uptrend on the news on Brexit, it is best to consider short positions from the highs around 1.2944 and 1.3006.
Indicator signals:
Moving averages
Trade returned to the area of 30-day and 50-day moving, which indicates the lateral nature of the market.
Bollinger bands
Volatility remains low, which does not give signals to enter the market.
More in the video forecast for January 21
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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