GBP/USD: plan for the European session on January 10. The situation with the British pound is becoming more and more difficult

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

There is no news on Brexit, as there is no movement in the GBP/USD pair. While trading is above the support of 1.2753, buyers of the British pound still have a chance to continue the upward trend, but this requires a breakout and consolidation above the resistance of 1.2798, which will open the way to new monthly highs in the area of 1.2868 and 1.2929, where I recommend taking profit. In the event of a decrease below the support level of 1.2753, it is best to consider long positions on the rebound from the lows of 1.2708 and 1.2658.

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

Only an unsuccessful consolidation above the resistance of 1.2798 with a return to this level or a breakdown of the support of 1.2753 will lead to a larger sale of GBP/USD with a test of lows in the area of 1.2708 and 1.2658, where I recommend taking profit. Positive news on Brexit from the British Parliament may lead to a sharp increase in the pound. In this scenario, you can open short positions after updating the highs of 1.2868 and 1.2929.

Indicator signals:

Moving averages

Trading is conducted in the area of 30-day and 50-day moving average, which indicates the lateral nature of the market.

Bollinger Bands

In case of growth, the upper limit of the Bollinger Bands indicator just above the large resistance in the area of 1.2820 will limit the upward potential. In case of a decrease, the support will be provided by the lower limit of the indicator in the area of 1.2730.

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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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