To open long positions on GBP/USD, you need:
The British pound continued its fall, which was formed at the end of last week after it became known about the formed British Cabinet, in which the majority is supporters of the hard Brexit. Today's series of fundamental statistics on the UK economy has been completely ignored by the market. Buyers missed the level of 1.2342 and also risk to miss the support of 1.2305, the breakdown of which is now being formed. The main hope for a new minimum in the area of 1.2266, and it is not a fact that someone will try to buy another false bottom. If we talk about the correction scenario for the second half of the day, it is best to count on long positions after returning to the resistance of 1.2305, which will lead to larger profit-taking and an increase in GBP/USD to the level of 1.2342, where I recommend taking the profit.
To open short positions on GBP/USD, you need:
The bears confidently fixed below the level of 1.2342, which is clearly seen on the chart, and continue to sell the pound. The breakout of the support at 1.2305 and keeping this level in the second half of the day will allow forming another bearish wave to the lows at 1.2266 and 1.2206, where I recommend taking the profit. If an upward correction is formed in the market, which sooner or later should occur, then when returning to the resistance of 1.2305, it is best to return to short positions very cautiously from the level of 1.2342, or sell more boldly from the maximum of 1.2387, where even speculative buyers will leave the market.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates a further decline in the pair.
Bollinger Bands
In the case of an upward correction, the average border of the indicator in the area of 1.2355 will act as a resistance.
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
