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

From a technical point of view, nothing has changed compared to the morning forecast. The pound has completely ignored the EU's decision to grant a flexible deferral that allows the UK to leave the EU at any point before January 31, 2020. Bulls today need to return to the resistance of 1.2860, which will be a signal to open long positions capable of updating the highs of 1.2943 and 1.3012, where I recommend taking the profits. If the pressure on the pound returns in the second half of the day, only the formation of a false breakdown in the support area of 1.2807 will be a signal to open long positions. Otherwise, it is best to buy GBP/USD on the rebound from the low of 1.2757 or even lower, in the area of 1.2664.

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

Several attempts at price growth, which occurred after the news about the delay, were easily restrained by the sellers of the pound, and the formation of a false breakdown in the resistance area of 1.2860 allows us to count on a larger downward correction in the support area of 1.2807, which was formed last Friday. However, a more distant goal will be the level of 1.2757, and the main task of sellers will be to return to the minimum of 1.2664, where I recommend fixing the profits. In the case of positive news on Brexit, and everything depends on the further actions of British Prime Minister Boris Johnson, as well as the breakthrough of the resistance of 1.2860, it is best to consider short positions in GBP/USD from larger highs around 1.2943 and 1.3012.

Indicator signals:

Moving Averages

Trading is conducted around 30 and 50 daily averages, which indicates the lateral nature of the market.

Bollinger Bands

Volatility has decreased, which does not give signals to enter the market.

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