GBP/USD: plan for the European session on April 17. Labour and Conservatives cannot agree on a Brexit agreement

To open long positions on GBP/USD you need:

Yesterday's news that Labour and Conservatives could not yet agree on a Brexit agreement led to renewed pressure on the pound. At the moment, it's best to consider long positions in GBP/USD after returning and consolidating above the resistance of 1.3070, which will lead to updating the upper border of the wide side channel in the area of 1.3118, where I recommend taking profits. With scenarios of a re-wave of the pound's decline, which can be formed on weak inflation data in the UK, it is best to expect long positions after a false breakdown in the area of 1.3022, confirming divergence on the MACD indicator, or a rebound from a low of 1.2989.

To open short positions on GBP/USD you need:

The data that will be released today in terms of inflation can keep the pressure on the British pound. The formation of a false breakdown around 1.3070 will be the first signal to sell, and if the pound rises above 1.3070, you can sell for a rebound from a weekly high in the area of 1.3118. In the first half of the day, the main goal of the bears will be to reduce and update support at 1.3022, a breakthrough of which will open a direct path to the low of 1.2989, where I recommend taking profits.

Indicator signals:

Moving averages

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

Bollinger bands

A break of the upper border of the Bollinger Bands indicator near 1.3070 may increase the demand for the pound, while a surge of the lower border of the indicator near 1.3025 will cause the pair to sharply fall.

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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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