20.05.201909:42 Forex Analysis & Reviews: GBP/USD: plan for the European session on May 20. UK returned to a hard Brexit scenario

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To open long positions on GBP/USD you need:

Theresa May's final failure in negotiations with Labour on the topic of Brexit returned the likelihood of a hard Brexit that continues to put pressure on the British pound. At present, it is best to return to long positions on a false breakdown in the support area of 1.2723 or to rebound from a larger level of 1.2672. The goal of the bulls will be the resistance of 1.2766, consolidating on which will lead to the formation of a large upward correction with an update of highs of 1.2812 and 1.2858, where I recommend to lock in the profit.

To open short positions on GBP/USD you need:

May's failure continues to weigh on the pound. Breakthrough and consolidation below the support of 1.2723 will lead to a new wave of short positions in GBP/USD with a rise to the lows of 1.2672 and 1.2614, where I recommend taking profits. However, do not forget that the pound has been declining for two weeks without a single correction. Therefore, the best scenario will be selling after an upward correction from the resistance of 1.2766, under the condition of a false breakdown, or to rebound from a high of 1.2813.

Indicator signals:

Moving averages

Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.

Bollinger bands

A break of the lower border of the indicator around 1.2710 will lead to a new wave of the pound's decline.

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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