To open long positions on GBP/USD you need:
The British pound fell after the British Parliament approved the amendments of Theresa May and ruled out the scenario of a disorderly exit. Many traders do not believe that now May will be able to persuade the EU to these amendments. It is best to look at long positions on the pound after updating the next weekly low in the area of 1.3013, and it is best to open long positions on a rebound from the low of 1.2950. The main task of buyers will be to return and consolidate above the resistance of 1.3129, which will keep the uptrend and lead to an update of the highs of 1.3200 and 1.3257, where I recommend to take profit.
To open short positions on GBP/USD you need:
The uptrend on the British pound is broken. The repeated support test of 1.3068 could lead to a further fall of the British pound with the exit to the lows of 1.3013 and 1.2950, where I recommend taking profit. A more interesting entry into selling GBP/USD will be the update of the resistance of 1.3129, with the formation of a false breakdown there, or sell immediately at a rebound from the resistance of 1.3200.
Indicator signals:
Moving averages
Trading is conducted below 30-day and 50-day moving averages, which indicates the formation of a downward movement in the British pound.
Bollinger Bands
In case of a further fall, the lower limit of the Bollinger Bands indicator in the area of 1.3032 may provide support. The upward correction will be limited by the upper limit of the indicator around 1.3170, from where you can sell the pound immediately on the rebound.
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
