To open long positions on GBP/USD, you need:
The growth of the average earnings helped the pound to strengthen its position in the first half of the day, and while trading will be conducted above the support of 1.2691, the demand for GBP/USD will remain. The main task will be to re-test the maximum of 1.2728, where the first profit took place in the first half of the day, will lead to a breakthrough in this range and a larger upward trend in the area of 1.2765. In case of return of the pound under the support level 1.2691, to the long positions, you can look for a rebound from the low of 1.2653.
To open short positions on GBP/USD, you need:
The sellers of the pound coped with the morning task and declared themselves from the resistance of 1.2728, from where I recommended to open short positions. The main goal of the bears for the second half of the day will be the middle of the channel 1.2691, the breakthrough of which will lead to the update of the lower border in the area of 1.2653, where I recommend taking the profit. With further growth of GBP/USD, which is unlikely, it is best to expect sales to rebound from the new high of 1.2765.
Indicator signals:
Moving Averages
Trading is conducted in the region of 30 and 50 moving averages, which indicates market uncertainty with a further direction.
Bollinger Bands
The downward movement of the pound will be limited by the lower limit of the indicator around 1.2670.
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
