GBP/USD: plan for the European session on March 29. Another disastrous vote on Brexit puts pressure on the pound

To open long positions on GBP/USD you need:

On Friday, the British Parliament expectedly rejected the agreement proposed by Theresa May on Brexit, which created even more uncertainty. It is best to return to long positions on the pound after updating the support levels of 1.3027 and 1.2979 or to rebound from a new low of 1.2909. The main task of the bulls in the first half of the day will be to return and consolidate above 1.3120, which will return the upward momentum to the pound and lead to a test of levels 1.3162 and 1.3212, where I recommend taking profits.

To open short positions on GBP/USD you need:

With the pound's growth to a resistance of 1.3120, you can count on big sellers to return to the market, and the formation of a false breakdown in this range will be the first signal to sell GBP/USD in order to update the lows around 1.3027 and 1.2979, where I recommend to lock in profits. In the absence of any support in the area of 1.2979, we can expect the pound to be sharply sold as well as test levels of 1.2909 and 1.2855. In case the pound increases above 1.3120 in the first half of the day, sales can be returned to a rebound from the resistance of 1.3162.

Indicator signals:

Moving averages

Trade is conducted in the area of 30-day and 50-day moving averages, which indicates the formation of a side channel.

Bollinger bands

In case the pound decreases, the lower limit of the Bollinger Bands indicator around 1.2979 will provide support. Growth will be limited by the upper boundary of the indicator around 1.3085, the breakdown of which will lead to an upward correction.

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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
The material has been provided by InstaForex Company - www.instaforex.com