To open long positions on GBP/USD, you need:
A weak report on the UK public sector borrowing put pressure on the British pound in the morning, however, buyers are trying to keep the pair around the level of 1.2135, and nd returning to this range to the opening of the North American session will lead to the continuation of the upward correction with a test maximum of 1.2176. The breakthrough of this level will provide GBP/USD a rush of larger buyers and exit to the level of 1.2217, where I recommend taking the profit. In the scenario of further GBP/USD decline in the second half of the day after the Fed report, it is best to consider new long positions on the rebound from the support of 1.2084, or after the update of a larger level of 1.2044.
To open short positions on GBP/USD, you need:
The bears managed to cope with the task and returned the pair to the support of 1.2135, and while trading will be below this range, we can expect continued downward correction after yesterday's growth, which occurred on Brexit news. The goal of the bears is the support of 1.2084, but the more significant level will still be at least 1.2044, where I recommend taking the profit. If the publication of the Fed's protocols supports the pair, it is best to consider new short positions on a false break from the weekly high of 1.2176, or on a rebound from the level of 1.2217.
Indicator signals:
Moving Averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the market.
Bollinger Bands
In the scenario of the pair growth in the second half of the day, it is best to count on short positions after updating the upper limit of the indicator in the area of 1.2185.
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
