GBP / USD pair: plan for the European session on January 9. Discussion of Brexit agreement begins in British Parliament

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

Today, the UK Parliament is discussing the Brexit agreement, which could lead to a surge in pound volatility if Teresa May offers nothing new. At present, a good buy signal will be a false breakdown in the support area of 1.2708. On the other hand, a breakthrough and consolidation above 1.2753 resistance, which will keep demand for the pound and lead to a test of maximum 1.2798, where I recommend taking profits. In the case of a decline below the support level of 1.2708, you can open long positions immediately to the rebound from 1.2658, where the lower limit of the new ascending channel will be formed.

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

Today, bears will try to maintain a downward correction and another unsuccessful consolidation above the resistance of 1.2753 may provoke closure of a number of long positions returning to the intermediate support area of 1.2708 and updating a larger area 1.2658, where I recommend taking profits. In case of growth above 1.2753, you can take a closer look at short positions after the testing level of 1.2798 or at a rebound from the new monthly maximum of 1.2868.

More details about the forecast can be found in the video review.

Indicator signals:

Moving averages

Trade has moved to the area of 30-day and 50-day moving averages, which indicates the end of the upward trend in the pound.

Bollinger bands

A break of the lower limit of the Bollinger Bands indicator around 1.2708 may resume pressure on the pound.

Found in the video review.

JWZG7DzQrtSPnsbIii8tc134T11mJ7cEghNm4dnl

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