To open long positions on GBP/USD, you need:
All attention is shifted to the election of the Prime Minister of Great Britain and to the candidates. In this regard, major players are not in a hurry to enter the market and change the situation. Buyers of the pound still need a return and consolidation above the resistance of 1.2950, which will allow us to count on rapid growth to a maximum of 1.2696 and an update of the resistance of 1.2744, where I recommend fixing the profits. With a further decrease in the pound, you can open long positions on a false breakdown from a minimum of 1.2607 or a rebound from the support of 1.2564.
To open short positions on GBP/USD, you need:
As long as the trade will be conducted below the resistance of 1.2650, the pressure on the pound will remain, and the formation of a false breakdown will be a signal to sell the pound. The main task of the bears will be the support test of 1.2607, which may lead to the resumption of the downward trend and update the minimum of 1.2564, where I recommend fixing the profits. If the growth scenario is above 1.2650, you can return to the sales of the pound immediately on the rebound from the maximum of 1.2696.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates a return of the pound sellers to the market.
Bollinger Bands
However, the main problem of a downward trend is low volatility, which does not give signals to enter 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
