To open long positions on GBP/USD, you need:
A strong report on retail sales in the UK, which indicated an increase of 1.0% in June this year compared to May, led to an increase in the pound in the morning and a change in the technical picture. At the moment, the bulls need to stay above the support of 1.2472, which was recently formed, which will give strength to the upward momentum and will lead to an update of the highs in the area of 1.2514 and 1.2561, where I recommend taking the profits. In the scenario of a pound decline below this level, it is best to return to long positions on the rebound from the low of the day around 1.2431.
To open short positions on GBP/USD, you need:
The bears will try to return to the support of 1.2472, which will lead to the closure of a number of long positions that were opened against the background of a good report on retail sales in the UK, and accordingly to the correction of the pair to the support area of 1.2431, where I recommend taking the profit. If the demand for the pound continues in the second half of the day, it is best to return to the short positions on the rebound from the large resistance of 1.2514.
Indicator signals:
Moving Averages
Trading is conducted above 30 and 50 moving averages, which indicates the preservation of the upward momentum after the data.
Bollinger Bands
If the pound falls in the second half of the day, the support will be provided by the average border of the indicator around 1.2447.
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
