To open long positions on GBP / USD, you need:
The pound rose sharply and made its way above the resistance of 1.2876 after the news appeared that the negotiators from the UK and from the EU agreed on the text of a declaration on future relations between the United Kingdom and the European Union. However, the specifics were not disclosed, which limits the upward potential. Only fixing above the resistance of 1.2876 will lead to further strengthening of the pound in the maximum area of 1.2962 and 1.3040, where I recommend fixing the profits. In the case of a decline in GBP / USD in the afternoon, purchases can be returned to the test support of 1.2796 or to rebound from the minimum of the month of 1.2723.
To open short positions on GBP / USD, you need:
The bears will try to do everything to gain a foothold by the end of the day under the resistance level of 1.2876, which will return to the market large players who are putting on a further decline of the pair. In this scenario, short positions can be opened for the purpose of the test of morning support of 1.2796. In the case of continued growth, which can be supported by new news on Brexit, it is best to consider short positions in GBP / USD from the maximum of 1.2962 and 1.3039.
Indicator signals:
Moving Averages
Trade has moved above the 30- and 50-day average, which indicates the formation of an upward movement in the pound.
Bollinger bands
The Bollinger Bands indicator indicates a decrease in volatility and does not give signals on market entry.
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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