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

Buyers of the pound returned to the market today and managed to gain a foothold above the resistance of 1.2916, which led to an update of the maximum of 1.2988. I paid attention to all this in my morning review. Growth was boosted by news that the European Commission is ready to grant the UK a three-month exit delay, but Boris Johnson's main fight in parliament is not yet over. Bulls should now count on the breakdown of the resistance of 1.2988, which will strengthen the demand for the pound and lead to the renewal of the next monthly highs in the area of 1.3037, 1.3074 and 1.3125, where I recommend taking the profits. However, such a large increase will only happen on the news of the UK Parliament's approval of the Prime Minister's deal. In the scenario of GBP/USD decline in the second half of the day, long positions can be looked at after a correction and a false breakdown from the minimum of 1.2916, or a rebound from the larger supports of 1.2833 and 1.2757.

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

Sellers are still holding resistance at 1.2988, however, the main movement will be built on Brexit news. Another failure of Boris Johnson may lead to the formation of a false breakdown at the maximum of 1.2988, which will act as a signal to sell the pound and lead the pair to the support of 1.2916. However, only the breakdown of this range will force buyers to take profits and leave the market for a while, which will collapse GBP/USD to a minimum of 1.2833 and 1.2757, where I recommend taking the profits. In the scenario of further growth of the pound on the trend and positive news on the vote, I do not recommend considering short positions in the pair above the resistance of 1.3037.

Indicator signals:

Moving Averages

Trading is above the 30 and 50 daily averages, which indicates the upward potential of the British pound.

Bollinger Bands

If the pound falls, the lower border of the indicator around 1.2845 will provide support.

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