GBPUSD D1 Our expectations:
Long-term and mid-term downward movement, short-term consolidation, and a breakout above 200SMA give good reason to expect further increases in pounds. SL must be below the bottom of the last closed Daily Bar or at around 1.2975.
The SMA200 is broken up and tested, which is a positive signal here.
DeM (14) returned above than 0.3 after being in an oversold market area – a positive signal.
DeM Sequential has counted up to 5, making it a good prerequisite to expect at least three more bullish bars, and the current adjustment gives us a good chance to look for long positions.
Above the current price there are many diagonal and horizontal resistances that are likely to be tested, but this deal is risky considering the participation of the pound.
Fundamental: Earlier news and comments came out about the likely closure of the Brexit saga, for now Britain is likely to leave the union with a deal that could have a positive effect on the pounds at least short-term. At the other end, the USD may find sellers after yesterday’s dovish sentiment from the FED meeting minutes.
Alternative Scenario: If the price returns below 200SMA it is likely to lead to a strong downward impulse and drop in the pair that would break the positive scenario.
Trader Nikolay Georgiev