To open long positions on GBP/USD you need:
Yesterday, the British pound managed to stay at monthly lows and showed a slight upward correction. While trading is above support at 1.2884, which acts as the middle of a side channel, demand for the pound will remain, and the main task of buyers will be a breakthrough and consolidation above the resistance of 1.2932, from which a direct road opens to a high of 1.2992, where I recommend taking profits. In case the GBP/USD declines in the first half of the day, below the level of 1.2884, long positions can be seen at a rebound from the lower boundary of the channel of 1.2837.
To open short positions on GBP/USD you need:
The return of sellers to the market will directly depend on today's UK inflation data. A bad report will lead to the breakdown of support at 1.2884 or to the formation of a false breakdown in the area of a resistance of 1.2932, which will be a good signal to sell the pound in order to test the lower limit of 1.2837, where I recommend taking profits in the first half of the day. In the event of good news from Theresa May and Brexit, demand for the pound might continue. In this scenario, you can sell on a rebound from a high of 1.2992.
Indicator signals:
Moving averages
Trade is conducted in the area of 30-day and 50-day moving averages, which indicates the lateral nature of the market with a slight advantage to buyers.
Bollinger bands
A break of the upper border of the Bollinger Bands indicator near 1.2925 will lead to a new wave of growth in the pound. In case the pair declines, support will be provided by the lower limit in the area of 1.2855.
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
