To open long positions on GBP/USD, you need:
Buyers showed themselves in the support area of 1.2612, which I drew attention to in my morning review, and now their goal is to return to the resistance level of 1.2670, on which a further upward correction will depend. The main goal of buyers to build a good trend will be the highs of 1.2730 and 1.2789, where I recommend fixing the profits. In the scenario of a repeated decline to the support area of 1.2612, it is best to open long positions from there, provided that a false breakout is formed, or a rebound from the minimum of 1.2564.
To open short positions on GBP/USD, you need:
Bears continue to push the pound down and are waiting for a steep collapse amid talk that British Prime Minister Theresa May will announce her resignation this weekend. The formation of a false breakout in the resistance area of 1.2670 will lead to a new wave of short positions in the pound and a decrease in the pair to the low of 1.2612, the breakthrough of which will provide sellers with a road to the support area of 1.2564 and 1.2500, where I recommend fixing the profit. In a scenario of rising above the 1.2670 during the second half of the day, the short position it is best to return the bounce from a high of 1.2730.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a bearish market.
Bollinger bands
In the case of growth the pound, the upward trend will be limited to the upper border of the indicator in the area of 1.2680.
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
