To open long positions on GBP/USD, you need:
Buyers of the pound need to keep the level of 1.2664, and the formation of a false breakdown there will be another signal to open long positions. The goal of GBP/USD buyers will be to return to the resistance of 1.2715, which was formed yesterday, which will lead to an update of the weekly highs in the area of 1.2760 and 1.2799, where I recommend taking the profit. In the scenario of further decline of the pound, it is best to return to long positions on the rebound from the low of 1.2623.
To open short positions on GBP/USD, you need:
Bears will try to break below the support of 1.2664, which will increase the pressure on the pound and will lead to an update of the lows in the area of 1.2623 and 1.2582, where I recommend taking the profit. If in the first half of the day, the bulls form an upward correction and you can count on sales from the resistance of 1.2715, provided that a false breakout is formed, or on a rebound from the maximum of 1.2760.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates a downward correction in the pair.
Bollinger Bands
The upward correction will be limited by the upper limit of the channel in the area of 1.2695, while the downward movement may be limited by the lower limit of the indicator in the area of 1.2645.
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
