To open long positions on GBP/USD, you need:
The bear market continues to prevail. Buyers of the pound today in the afternoon need a return to the resistance of 1.2642, which was formed at the European session. Only after that, you can expect to update the highs of 1.2673 and 1.2705, where I recommend fixing the profit. In the scenario of further decline of the pound to the support area of 1.2608, it is best to look at long positions only after the test of the minimum of 1.2582 or buy GBP/USD for a rebound from large support of 1.2544.
To open short positions on GBP/USD, you need:
Bears will be counting on the speech of the Governor of the Bank of England, who can signal a longer period of current interest rates, which will put pressure on the pound. The repeated support test of 1.2608 will collapse the British pound in the area of the lows of 1.2582 and 1.2544, where I recommend fixing the profit. In case of an upward correction, a false breakout near the maximum of 1.2642 will be a signal to sell the pound. With the growth of GBP/USD above the maximum of 1.2642, you can count on short positions from the resistance of 1.2673.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a further decline in the pound.
Bollinger Bands
The growth of the pair will be limited by the upper boundary of the indicator around 1.2650.
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
