To open long positions on GBP/USD you need:
Pound buyers will count on the growth of the PMI index for the services sector, which will help in forming a false breakdown in the support area of 1.2582 and this will be the first signal to open long positions. However, the main task is to return to a resistance of 1.2612, which will lead to a larger upward correction in the area of 1.2642, where I recommend taking profits in the first half of the day. With a decline scenario below a support of 1.2582, it is best to look at long positions for a rebound from a low of 1.2544.
To open short positions on GBP/USD you need:
A weak report on the service industry will likely pull down the pound. A break of support at 1.2582 will increase the pressure on the pair and will lead to an update of the lows of 1.2544 and 1.2513, where I recommend taking profits. Failing to consolidate above the resistance of 1.2612 will also be a good signal to open short positions. With growth above this range, you can sell for a rebound from a high of 1.2642.
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 to the upper boundary of the channel in the region of 1.2635, while a breakthrough in the lower boundary in the region of 1.2575 will strengthen the bearish momentum.
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
