To open long positions on GBP / USD, you need:
The pound calmly reacted to the decision of the Bank of England to leave the interest rate unchanged, which is expected to limit the upward trend in the upper border of the side channel of 1.2705, which I paid attention to in my morning review. In the afternoon, the signal to buy will be the formation of a false breakdown in the middle of the channel of 1.2658. Otherwise, you can buy a pound to rebound from the lower limit of 1.2609. The main objective remains the breakthrough of resistance level of 1.2705, which will lead GBP / USD to a new high of 1.2755.
To open short positions on GBP / USD, you need:
While trading is below the resistance level of 1.2705, the pressure on the pound will continue, and the next formation of a false breakout, there will be a direct sell signal, with the aim of returning and reducing below the middle of the channel of 1.2658, below which the GBP / USD pair can quickly fall into the area of the day minimum of 1.2609. If the pair grows in the second half of the day, it is best to consider short positions to rebound from a new high of 1.2755.
Indicator signals:
Moving Averages
Trade is conducted just above the 30-day and 50-day moving, which more indicates the formation of the lateral nature of the market.
Bollinger bands
In the case of a decrease in the pound, you can consider long positions on the rebound from the middle border of the Bollinger Bands indicator around 1.2640.
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
