To open long positions on GBP/USD, you need:
Yesterday, buyers of the pound held above the important support level of 1.2623, which bears tried to break through throughout the day. This allowed us to keep the upward correction, which is now aimed at the resistance of 1.2697, a breakthrough above will provide GBP/USD return to a maximum of 1.2744, where I recommend fixing the profit. In the scenario of a pound decline in the first half of the day, only the formation of a false breakout in the support area of 1.2656 will allow buyers to return to the market. In another scenario, it is best to open long positions on the rebound from the minimum of 1.2611.
To open short positions on GBP/USD, you need:
Sellers of the pound will count on the formation of a false breakout in the resistance area of 1.2697, which will be the first signal to open short positions in order to reduce to the support of 1.2656. However, the main task of the bears is to consolidate under the level of 1.2656, which will lead to the demolition of a number of stop orders of buyers and a larger decrease in GBP/USD in the area of the minimum of 1.2611, where I recommend fixing the profits. In a growth scenario above 1.2697, the resistance range of 1.2744 will be an acceptable area for short positions.
Indicator signals:
Moving Averages
Trading is above 30 and 50 moving averages, indicating an upward correction in the pound.
Bollinger Bands
The average border of the indicator in the area of 1.2656 keeps the pound from a new wave of falling. In the GBP/USD growth scenario, short positions can be considered to rebound from the upper limit in the area of 1.2697.
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
