12.12.201913:12 Forex Analysis & Reviews: GBP/USD: plan for the US session on December 12. The pound fell slightly after updating the next highs before the elections in the UK

To open long positions on GBPUSD, you need:

Bulls have retreated from the market and are waiting for the results of the parliamentary elections in the UK. As noted in the morning review, the victory of the Conservative Party and the majority in parliament will lead to a new sharp wave of growth of GBP/USD, and a break above the maximum of 1.3220 will only drag new major players into the market, which will allow reaching the levels of 1.3265 and 1.3316, as well as test the resistance of 1.3375, where I recommend taking the profits. In the scenario of the absence of a majority of the conservatives, it is best to return to long positions after the correction in the area of large support levels of 1.3049 and 1.2988. It is best to open long positions from the lower border of the current side channel around 1.3108 if a false breakout is formed.

To open short positions on GBPUSD, you need:

You can count on short positions in the pound only on the condition that the next UK elections again will not allow the formation of a majority in the parliament of any party, which will leave the current impasse with Brexit unchanged. If Labor won, then the pressure on the pound will increase. A break below 1.3108 will lead to a larger downward movement with a return to the lows of 1.3049 and 1.2988, where I recommend taking the profits. However, the further targets of the bears will be the levels of 1.2939 and 1.2896. In the scenario of the pound growth, it is best to return to short positions only after updating the next annual highs around 1.3265 and 1.3316, as well as a rebound from the resistance level of 1.3375.

Indicator signals:

Moving Averages

Trading is conducted in the area of 30 and 50 daily averages, the breakout of which will increase the pressure on the British pound.

Bollinger Bands

Breaking the lower border of the indicator around 1.3164 will lead to a larger sell-off of GBP/USD.

Description of indicators

• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
• MACD indicator (Moving Average Convergence / Divergence - moving average Convergence / Divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
• Bollinger Bands (Bollinger Bands). Period 20