To open long positions on GBP/USD, you need:
The bear market continues to dominate, and a weak report on the service sector has helped sellers today. Today, in the afternoon, pound buyers need to return to the level of 1.2582, which was broken at the European session. Only after that, it will be possible to expect a correction upwards and an update of the highs of 1.2612 and 1.2642, where I recommend fixing the profit. In the scenario of further decline of the pound on the trend, it is best to look at long positions only after the test of the minimum of 1.2544 or buy GBP/USD on the rebound from the large support of 1.2513.
To open short positions on GBP/USD, you need:
Bears will expect a good report on the US labor market, which will lead to the formation of a false breakout in the resistance area of 1.2582 and a further decline in GBP/USD to the lows of 1.2544 and 1.2513, where I recommend taking the profits. If buyers are able to take advantage of the temporary weakness of the US dollar and return to the resistance of 1.2582, it is best to return to short positions on the rebound from the resistance of 1.2612 or even higher – from the maximum of 1.2642.
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 limit of the indicator around 1.2612.
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
