To open long positions on GBP/USD, you need:

The news that Boris Johnson has become the new Prime Minister of the UK, is expected to support the British pound, which I drew attention to in my morning review. However, it is problematic to count on a larger upward movement in the pair. To do this, the bulls should try to consolidate above the resistance of 1.2475, which will lead to the demolition of a number of stop orders of sellers and to the update of a larger local maximum in the area of 1.2509, where I recommend taking the profit. In the scenario of the pound decline, and the volatility will remain quite high today, as any statements of the new Prime Minister will be perceived with particular importance, it is best to look at long positions on the support test of 1.2424 or on the rebound from a larger minimum of 1.2383.

To open short positions on GBP/USD, you need:

Bears will try to keep the pound below the resistance of 1.2475, and the formation of a false breakout at this level will be the first signal for the opening of short positions in the pair. Of particular importance will be the speech of the new Prime Minister of the UK, and in the case of sharp statements on the topic of Brexit, traders can again begin to quickly get rid of long positions. In this scenario, support will be provided by the level of 1.2424, but the main bearish target will be at least a month in the area of 1.2383 and its update in the area of 1.2342, where I recommend taking the profit. In case of further growth of GBP/USD, it is best to look at short positions from the maximum of 1.2509 or a rebound from a larger level of 1.2552.

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, which keeps the bearish momentum.

Bollinger Bands

With the growth of the pound in the second half of the day, the upper limit of the indicator in the area of 1.2505 will act as a 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