To open long positions on GBP/USD you need:
Yesterday's statements by the Bank of England on a possible earlier increase in interest rates did not inspire buyers of the pound. In the first half of the day, the bulls are required to stay above the support level of 1.3018, and the formation of a false breakdown on this range will be the first signal to open long positions in order to update a high of 1.3060 and return to 1.3097, where I recommend to lock in the profit. In case the pound further decreases, you can buy GBP/USD at a rebound from the low of 1.2983.
To open short positions on GBP/USD you need:
As long as trading is below the 1.3060 range, the pressure on the pound will continue. The main task of bears in the first half of the day will be a breakthrough of the support level of 1.3018, which will increase the pressure on the pair and lead to a larger movement down to the area of a low of 1.2983, where I recommend taking profits. With the growth scenario above 1.3060, it is best to look closely at a rebound from the high of this week around 1.3097. An unsuccessful consolidation at 1.3060 will be another signal to sell the pound, which will make it possible to form the upper limit of the new downward channel.
Indicator signals:
Moving averages
Trade is conducted in the region of 30 and 50 moving averages, which indicates market uncertainty with a bearish advantage.
Bollinger bands
Indicator volatility has decreased, which does not provide signals for entering 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
