18.10.201914:00 Forex-elemzések és áttekintések: GBP/USD: plan for the American session on October 18th. The bulls returned to the level of 1.2916, but further movement depends on the vote in the British Parliament

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

Buyers of the pound got close to the level of 1.2916, which I paid attention to in my morning forecast, but it was not possible to break above this range yet. Further movement will directly depend on the negotiations of Boris Johnson with the Labor and the Democratic Union Party of Great Britain. If Johnson enters support, demand for the pound will return, and a break and consolidation above the resistance of 1.2916 will lead the pair to new local highs around 1.2997, 1.3037 and 1.3074, where I recommend taking the profits. Any negative background will put pressure on GBP/USD, therefore, when reduced, only the formation of a false breakdown in the support area of 1.2833 will be a signal to buy the pound. If the pair falls below the support of 1.2833, long positions can be returned to the rebound from the lows of 1.2757 and 1.2664.

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

From a technical point of view, nothing has changed. Sellers need bad news on Brexit, and the formation of a false breakdown in the resistance area of 1.2916 will be an additional signal to sell the pound. However, the more important task of the bears today is to return and consolidate the pair below the support of 1.2833, which will push the pound to the lows of 1.2757 and 1.2664, where I recommend taking the profits. However, such a downward movement will only be possible if the Labor Party refuses to support the Brexit agreement, which will greatly complicate Boris Johnson's "life" before tomorrow's parliamentary vote. In the scenario of further growth of the pound above the resistance of 1.2916, one can look at short positions after testing the highs of 1.2997 and 1.3074.

Indicator signals:

Moving Averages

Trading is just above the 30 and 50 daily averages, but the upward potential of the pound is limited due to the lack of news.

Bollinger Bands

The growth of the pound is limited by the upper level of the indicator around 1.2895, a breakthrough of which may lead to a new upward wave.

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