GBP / USD pair: plan for the American session on December 4. Good news for Brexit led to a rise in the British pound

To open long positions on GBP / USD pair, you need:

News that the UK may cancel the decision on Brexit without the consent of other EU countries, led to an increase in the pound in the morning. However, as we can see on the graph, it is not yet possible to cope with the large resistance of 1.2823. The task for the second half of the day will be a breakthrough at 1.2823 with access to the next weekly maximum in the area of 1.2880, where I recommend taking profits. In the case of a downward GBP / USD correction, you can take a closer look at long positions from support at 1.2778, which also stands in the middle of the side channel.

To open short positions on the GBP / USD pair, you need:

Bears are faced with the task of keeping the pair below the resistance of 1.2823 and the formation of a false breakdown there will lead to a downward correction in the pound to the area of the middle of the channel 1.2778, where I recommend taking profits. Today's news on Brexit, by itself, does not affect the medium-term growth prospects of the pound, hence, the volatility will remain quite high until the decision of the parliament. A breakthrough of 1.2778 may lead to an immediate sale of GBP/USD pair to a monthly minimum of 1.2722, where I recommend taking profits.

Indicator signals:

Moving averages

Trade has moved above the 30-day and 50-day moving averages, but this does not mean the formation of a new upward wave.

Bollinger bands

In the case of a decrease in the pound, long positions can return immediately to the rebound from the middle border of the Bollinger Bands indicator, which is located in the area of 1.2745.


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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