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

From a technical point of view, there has been no change. The disastrous meeting between Juncker and Johnson faded into the background, after which the volatility of GBP/USD seriously decreased again. As for buyers, they are expected to hold the level of 1.2397 in the first half of the day and now, while trading is above this range, we can expect continued growth of the pair to the highs of 1.2465 and 1.2534, where I recommend taking the profit. However, it will be possible to expect larger growth only when real solutions for Brexit appear. It is best to look at long positions after a downward correction to the lows of 1.2345 and 1.287.

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

Sellers of the pound in the second half of the day, after the data on industrial production in the US, are likely to make an attempt to break through the support of 1.2397, which will only increase the pressure on the pair and lead to a return to the side range of last week to the levels of 1.2345 and 1.287, where I recommend fixing the profits. In the scenario of an upward correction, you can expect to sell after the formation of a false breakdown in the area of 1.2465, since this level will determine the further direction of the pair. If the bulls manage to regain 1.2465, it is best to consider new short positions on the rebound from the maximum of 1.2534.

Signals:

Moving Averages

Trading around 30 and 50 moving averages, indicating some market uncertainty.

Bollinger Bands

Volatility is very low, which does not give signals to enter the market.

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