The news from the Brexit negotiations is extremely positive for both the EU and the UK. According to Bloomberg's sources, the EU and the UK will remove some of their demands towards each other, which will make it easier to reach a deal on Brexit. The effect of these news was clearly visible even on the daily chart of GBP/USD.
The price is still within the descending channel. We will be following the pair for a break out above the key area around 1,305. This will be a break out above the Fibonacci resistance (23.6%), the level of previous bottoms and a downward channel break. If the price breaks above these levels, we will wait for a retest of 1,306-1,307 before we initiate long positions.
Entry: 1,306-1,307, after break out and retest
S / L: 1.30472
Alternative scenario: If the price fails to break above 1,305-1,306, the impulse will be fake and the price will remain within the downwards channel. In this case, the price will offer the opportunity for initiating short positions in the direction of the overall long-term downward trend.
Our strategy will be to wait for a decisive break above 1,306 to consider a long position. Currently, the short position is more attractive from a purely fundamental point of view, as well as from the position of the overall trend.
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