EUR / USD
To open a long position on EURUSD it is required:
The first part of the plan for updating to 1.1558 is completed, and while the trade is under this level, as it shows a small downward correction. In case of a breakdown and consolidation above 1.1558, as it was with 1.1528, you can raise long positions with the purpose of growth in the region of a new monthly peak of 1.1591, where I recommend locking profits on long positions. In case of a major downward correction in the second half of the day, it is best to go back to buying the euro in the support area of 1.1528-25 or to rebound from 1.1502.
To open a short position on EURUSD it is required:
Sellers are still holding the level of 1.1558, however, given the upward momentum, it is unlikely to do so without updating. To sell from 1.1558, I recommend only doing so after updating the high of the day and returning under this range with the base target of 1.1528. In case of continued growth in the euro above 1.558, it is best to sell only for a rebound from a large resistance of 1.1591.
GBP / USD
For opening long positions on GBPUSD you need to:
Weak inflation data pulled down the British pound. At the moment, buyers are focused on a level of 1.1303, however, in case of a weak upwards rebound in the pound and another return to this level, I recommend postponing long positions to a larger support of 1.2957. Growth and consolidation above 1.3035 will further signal to raise long positions with an update of 1.3079.
To open a short position on GBPUSD you need to:
In the afternoon, Mark Carney spoke and his negative review on inflation can impair the pound even more. Failure to secure to 1.3037 and a return to this level will be a good signal to raise short positions in order to update 1.2957 and 1.2917. In case of larger growth, it is best to return to selling the pound for a rebound of 1.3079. Breakdown and consolidation below 1.3003 will also testify in favor of maintaining a bearish trend.
- MA (moving average) 50 days - yellow
- MA (moving average) 30 days - green
- MACD: a fast EMA 12, Slow EMA 26, SMA
- Bollinger Bands 20
