To open long positions on the GBP / USD pair, you need:
Pound buyers, for stopping a downtrend, need to form a false breakdown in the support area of 1.2943 with confirmation of divergence on the MACD indicator. Only after that, it will be possible to count on a repeated upward correction in the area of resistance 1.2990, as well as on updating the maximum of 1.3037, where I recommend taking profits. In the case of a further decline in the GBP/USD pair, it is best to look at long positions for a rebound from a low of 1.2905.
To open short positions on the GBP / USD pair, you need:
A weak report on the UK labor market may maintain pressure on the pound in the first half of the day and the formation of a false breakdown in the area of resistance at 1.2990 will be an additional signal to open short positions. The sellers will target the lows of 1.2905 and 1.2866, where I recommend taking profits. However, it is important to be careful in selling the pair for the breakdown of support at 1.2943, which eliminates the divergence that can be formed on the MACD indicator. In the case of the growth of the pound on the data above the resistance of 1.2990, you can sell for a rebound from the maximum of 1.3037.
Indicator signals:
Moving averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger bands
In the case of a further decrease in the pound, support will be provided by the lower limit of the indicator in the area of 1.2922, where divergence can be formed on the MACD indicator. The resistance is the upper limit in the area of 1.3015.
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
