To open long positions on the GBP / USD pair, you need:
The British pound is on the verge of another major fall, but buyers still have a chance to continue the upward correction. Yesterday, buyers failed to keep the pair above the level of 1.2696, which will maintain a downward impulse. Today, a return and consolidation above resistance 1.2969 are required in the first half of the day, which will allow us to expect a quick return to the maximum of 1.2744 and an update of resistance 1.2800, where I recommend taking profits. With a further decrease in the pound, you can open long positions on a false breakdown from the low of 1.2648 or on the rebound from the support of 1.2607.
To open short positions on GBP / USD pair, you need:
As long as trading will be below the resistance of 1.2696, pressure on the pound will continue. Moreover, the formation of a false breakdown there in the first half of the day will be a signal to sell the pound. The main task of the bears is to the test support of 1.2648, which may lead to an update of the minimum of 1.2607, where I recommend taking profits. When the growth scenario is above 1.2696 in the first half of the day, you can return to sales of the pound immediately to rebound from the maximum of 1.2744.
Indicator signals:
Moving averages
Trading is conducted below 30 and 50 moving averages, which indicates a possible return to the market of large sellers.
Bollinger bands
Volatility is very low, which does not give 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
