To open long positions on GBP/USD, you need:
In the morning, I paid attention to the support of 1.2195, after a false breakdown of which the pound buyers had to return to the market, which happened. At the moment, the task of the bulls is the resistance of 1.243, which will limit the upward potential, but the main goal will be a maximum of 1.2301, where I recommend fixing the profits. Given that the market is unstable, after yesterday's news about the suspension of the UK Parliament, it is possible that the pound will fall further. With a repeated test of the support of 1.2195, I recommend to postpone long positions until the test of larger lows of 1.2158 and 1.2123.
To open short positions on GBP/USD, you need:
The sellers were not able to catch the first support for 1.2195, but also, as can be seen on the chart, no one wants to rush into buying the pound either. The task of the bears, as in the first half of the day, will be to break and consolidate below the level of 1.2195. Only after that can we expect a further drop in GBP/USD in the area of larger supports of 1.2158 and 1.2123, where I recommend fixing the profits. If the pound will continue to show an upward correction, it is best to look at short positions after a false breakdown from a maximum of 1.2250 or sell on a rebound from 1.2300.
Signals of indicators:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a return to the sellers market.
Bollinger Bands
The growth of the pound has already stopped the upper limit of the indicator at 1.2230. The bears will be focused on the break of the lower border of 1.2190, which will lead to a further decrease in the pair.
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
