To open long positions on the GBP / USD pair, you need:
Buyers could not keep the price above the support of 1.2753 in the first half of the day, although there were preconditions for further growth. At the moment, only a confident return above the level of 1.2753 will return the chance to continue the upward trend, which will lead to the test of resistance 1.2798. Only after such a scenario will it be possible to count on updating the highs of 1.2868 and 1.2929, where I recommend taking profits. In the case of a decrease in the pound in the second half of the day, it is best to consider long positions to rebound from the lows of 1.2708 and 1.2658.
To open short positions on the GBP / USD pair, you need:
As long as trading is below 1.2753, one can count on a further decline in the pound. A breakdown of support at 1.2708 will lead to a rapid decline in GBP / USD to the lows of 1.2658 and 1.2614, where I recommend taking profits. Positive news on Brexit from the UK Parliament could lead to a sharp increase in the pound. In this scenario, short positions can be opened after the highs of 1.2868 and 1.2929 are updated.
Indicator signals:
Moving averages
Trade is conducted in the area of 30-day and 50-day moving, which indicates the lateral nature of the market.
Bollinger bands
The upside potential of the pound is limited by the upper limit of the channel indicator Bollinger Bands around 1.2815.
More in the video forecast for January 10
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
The material has been provided by InstaForex Company - www.instaforex.com