GBP/USD: plan for the European session on March 14. The British Parliament voted against a Brexit without a deal

To open long positions on GBP/USD you need:

Yesterday, the British Parliament voted against the Brexit scenario without a deal, which led to the pound’s growth. A vote on the extension of the exit from the EU will be made today. You need to be very careful with long positions on the pound. Buyers need a breakthrough and consolidation above the level of 1.3286, which will lead to growth in the area of a high of 1.3329, where I recommend taking profits. The main task of the bulls will be the test of resistance of 1.3375, which will increase the chance for a continuation of the uptrend. However, a more optimal buying scenario would be a correction of the pound to the support area of 1.3216 and 1.3155.

To open short positions on GBP/USD you need:

Bears will emerge from the resistance level of 1.3286, or you can open short positions immediately to rebound from a high of 1.3329. Sellers will try to return the pair to the support of 1.3216, at the first test of which a good upward rebound will occur. However, when GBP/USD falls again to this level, you can increase short positions in order to update the low of 1.3155, where I recommend taking profits.

Indicator signals:

Moving averages

Trading takes place above the 30-day and 50-day moving averages, but with current volatility, this is not a signal to buy.

Bollinger bands

If the pound falls, support will be provided by the lower limit of the Bollinger Bands indicator around 1.3155. An upward trend will limit the upper limit of the indicator in the area of 1.3329, where you can open short positions immediately to a rebound.

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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

The material has been provided by InstaForex Company – www.instaforex.com