To open long positions on GBP/USD, it is required:
The formation of a false breakout in the area of 1.2752, subject to the correction of the pair in the first half of the day, will be a signal to buy the pound, but the main task is to break through and consolidate above the resistance of 1.2798, which will lead to the renewal of a larger boundaries of 1.2833, where the entire emphasis will be on data on the US labor market, as well as news on Brexit from the UK Parliament, which may appear at any time. In case of a decline below the level of 1.2752, it is best to return to long positions to the rebound from the low of 1.2702.
To open short positions on GBP/USD is required:
To open short positions, a false breakout in the resistance area of 1.2798 or a return and consolidation below the support level of 1.2752 is required. A good report on the US labor market will help bears to pull down the British pound to the lower boundary of the side channel of 1.2702, where I recommend to take profit. If the pair rises above the resistance of 1.2798 in the first half of the day, it is possible to sell the pound on a rebound from the high of 1.2833 and 1.2868, where the number of sellers is more concentrated.
Moving averages
Trade is conducted in the area of 30-day and 50-day moving averages, which indicates the lateral nature of the market.
Bollinger bands
The volatility of the Bollinger Bands indicator is low, 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
