GBP/USD: plan for the European session on February 8. News about a possible postponement of the UK exit from the EU strengthened the pound

GBP/USD: plan for the European session on February 8. News about a possible postponement of the UK exit from the EU strengthened the pound

To open long positions on GBP/USD you need: Yesterday there was news that the political declaration may be amended regarding the timing of the UK exit from the EU, which led to the purchase of the pound. The statements of the head of the Bank of England also supported the pound. Currently, buyers need to form a false breakdown in the support area of 1.2922, which will be the first signal to open long positions for continued growth in the area of yesterday’s high of 1.2993, consolidating above which will lead to a number of purchases with a resistance test of 1.3048, where I recommend taking profits. In case of a decline below the support of 1.2922, it is best to return to long positions to rebound from a low of 1.2860.

To open short positions on GBP/USD you need: Only bad news on Brexit can put pressure on the pound. Sellers are required to return to the support level of 1.2922, which will lead to a larger sale of GBP/USD with a test of 1.2860, where I recommend taking profits. In case of a further upward correction, you can take a closer look at short positions in the false breakdown around 1.2993 or sell the pound to rebound from a high of 1.3048.

Indicator signals:

Moving averages Trade is conducted in the area of 30-day and 50-day moving average, which indicates the formation of an upward correction.

Bollinger bands In case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.2980 will limit the growth of the pound. 

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

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