GBP/USD: plan for the US session on January 8. The pound remains in the channel and awaits news from the British Parliament

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

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 case of a decline 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 is required:

The emerging divergence on the MACD indicator did not allow the bears to break below the support of 1.2753 in the first half of the day. Only an unsuccessful consolidation above 1.2798 with a return to the level 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 to take 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, which indicates a possible change in the bullish trend.

Bollinger Bands

Volatility has fallen and the Bollinger Bands indicator does not give signals on entering the market.

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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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