To open long positions on GBP/USD, you need:
Despite the rebound in the first half of the day from the support level of 1.2623, which I paid attention to in my review, there was no larger upward correction of the pound. At the moment, the bears managed to push the support of 1.2623, and to count on the purchase of GBP/USD is best after the correction to the area of 1.2595, and even better from the low of last week in the area of 1.2559. The main task of the bulls will be to close the day above the level of 1.2623, which will retain the upward potential and allow to expect an update of the maximum of 1.2686.
To open short positions on GBP/USD, you need:
As in the first half of the day, the bears need to return and consolidate under Friday's level of 1.2623, which will gradually return sellers to the market and will update the minimum of last month in the area of 1.2559, where I recommend fixing the profits. In the scenario of further upward correction, the demand for the pound will gradually slow down when approaching the maximum of 1.2686, where you can open short positions immediately on the rebound. Any negative news related to Brexit will scare off potential buyers and lead to the resumption of the bearish trend.
Indicator signals:
Moving Averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates market uncertainty and the struggle for the trend.
Bollinger Bands
The pound in the second half of the day will be limited to the upper border of the indicator in the area of 1.2660.
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
