To open long positions on GBP/USD, you need:
Yesterday, the bulls managed to keep the support level of 1.2603, which is a good signal for a change in the downward trend. Today, in the first half of the day, a return and consolidation above the resistance of 1.2950 are required, 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 1.2603 or on a rebound from the support of 1.2564.
To open short positions on GBP/USD, you need:
As long as trading will be below the resistance of 1.2650, pressure on the pound will remain, and the formation of a false breakdown in the first half of the day will be a signal to sell the pound. The main task of the bears is the breakthrough of support at 1.2603, which may lead to the resumption of the downward trend and update the minimum of 1.2564, where I recommend fixing the profits. When the growth scenario is above 1.2650 in the first half of the day, you can return to sales of the pound immediately to rebound from a maximum of 1.2696.
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 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
