FX.co ★ GBP/USD: plan for the American session on October 24th. Volatility declines amid lack of Brexit news

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

The lack of news on Brexit and specifics from the EU did not allow the bulls today to get to the resistance of 1.2925, which remains a problem for them. From a technical point of view, nothing has changed. Buyers of the pound still have a high chance of a rise in the pound, but much will depend on the EU's decision to grant a reprieve. As noted in the morning forecast, if the delay is 1-2 weeks – this is a bullish signal, and a break in the resistance of 1.2925 will lead to a larger upward movement to the weekly highs of 1.3012 and to their renewal in the area of 1.3074, where I recommend taking the profits. If the EU refuses to grant a delay for such a short period – this is a bearish signal. Therefore, in the case of a decline in GBP/USD, it is best to count on buying after the formation of a false breakdown in the support area of 1.2842, or after the decline and the test of large lows of 1.2757 and 1.2664.

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

The sellers are still satisfied with the current Brexit news, but the EU is required to meet Boris Johnson and approve a short delay of 1-2 weeks. Sellers coped with the task and did not let the pound above the resistance of 1.2923, which is, to some extent, a bearish signal. However, the main task for the second half of the day is to break the support of 1.2842, which will lead to the demolition of several stop orders and further decline of GBP/USD to the area of the lows of 1.2757 and 1.2664, where I recommend taking the profits. In the case of a successful breakdown of the resistance of 1.2925, above which there is a large number of stop orders of sellers, the next large levels for opening short positions will be viewed in the area of 1.3074 and 1.3167. However, I do not recommend considering the pound for sales, as the situation is still on the side of buyers.

Indicator signals:

Moving Averages

Trading is around 30 and 50 daily averages, indicating market uncertainty.

Bollinger Bands

In the case of pound growth and breakthrough of the upper limit of the indicator in the area of 1.2923, it can expect further upward movement along with the trend.

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