To open long positions on GBP/USD, you need:
Despite the fact that the buyers of the pound missed the support level of 1.2682, while trading is above the minimum of 1.2653, it would be wrong to talk about the continuation of the downward trend. The main task of the bulls for the second half of the day is to return to the resistance of 1.2682, which will lead to an update of the highs in the area of 1.2720 and 1.2756, where I recommend taking the profit. With a further decline in GBP/USD, buyers will try to form a false breakout at a minimum of 1.2653. In another scenario, it is best to open long positions on the rebound from the minimum of 1.2617.
To open short positions on GBP/USD, you need:
Sellers of the pound will try to keep the pair below the resistance of 1.2682, and an unsuccessful consolidation at this level in the second half of the day will be a signal to open short positions in order to reduce to the low of 1.2653 with the update of the area of 1.2617, which will indicate the formation of a new downward trend in the market. In the case of growth above 1.2682 in the second half of the day, it is best to look at short positions on the rebound from the maximum of 1.2720 or from a larger resistance of 1.276.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates a possible continuation of the pair's decline.
Bollinger Bands
In case of the pound growth in the second half of the day, the upper limit of the indicator in the area of 1.2700 will act as a resistance.
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
