GBP/USD: plan for the European session on November 23. No news on Brexit puts pressure on the pound

To open long positions for GBP/USD, it is required:

Yesterday, the pound rose sharply and returned to the resistance area of 1.2880 after news appeared that negotiators from the UK and from the EU agreed on the text of a declaration on the future relationship between the United Kingdom and the European Union. Despite this, trade is conducted below 1.2880, and only consolidation above this resistance will lead to further strengthening of the poundin the area of the high of 1.2962 and 1.3040, where I recommend taking profits. If the GBP/USD drops in the afternoon, purchases can be returned to the test of support 1.2835 or to rebound from the low of the month of 1.2787.

To open short positions for GBP/USD, it is required:

Bears will try to do everything to form a false breakdown at 1.2880, which will return large players who bet on a further decline of the pair to the market. In this scenario, you can open short positions with the support test of 1.2835, but the main goal will be the lower limit of the channel of 1.2787, where I recommend taking profits. In the event of continued growth and a breakthrough of resistance at 1.2880, it is best to consider short positions in the GBP/USD from the highs of 1.2962 and 1.3039.

Indicator signals:

Moving averages

Trade is conducted above the 30-day and 50-day moving averages, which indicates the likely continuation of the pound's growth.

Bollinger bands

The volatility of the Bollinger Bands indicator is low, which does not provide signals to enter the market.

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Indicator description

  • Moving Average (average sliding) 50 days - yellow
  • Moving Average (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
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