To open long positions on GBP/USD you need:
There is no decision on Brexit, which brings the UK closer to leaving the EU without an agreement. The deadline is on April 12. Buyers failed to keep above the support level of 1.3061, which now acts as resistance. In the second half of the day, the bulls can prove themselves after updating the large support level of 1.2992, and if there is no one, then it is better to open long positions on the rebound from the minimum of 1.2950. The return and consolidation above the resistance of 1.3061 can form a larger growth of GBP/USD with a test of the maximum of 1.3109, where I recommend fixing the profit.
To open short positions on GBP/USD you need:
The bears had worked out the morning scenario for the return and consolidation below the support of 1.3061, to which I drew attention in my review. At the moment, the next target of sellers will be the support area of 1.2992 and 1.2950, where I recommend fixing the profits. Any negative news on Brexit can lead to a big sale of the pound. In the scenario of an upward correction in the second half of the day, there is a resistance level of 1.3061, but I recommend to sell the pound immediately on the rebound only after the test of the maximum of 1.3109.
Indicator signals:
Moving Averages
Trading is below 30-day and 50-moving averages, which indicates the formation of a downtrend in the pound.
Bollinger bands
In case of growth, the average border of the Bollinger Bands indicator in the region of 1.3075 will act as resistance.
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