To open long positions on GBP/USD, you need:
In the morning forecast, I paid attention to the important support level of 1.2220 and recommended to open long positions from it in case of the formation of a false breakdown there, which happened. At this moment, the bulls ran into the resistance of 1.2343, where upward momentum has slowed down a bit. To continue the growth of GBP/USD, a correction to the support area of 1.281 is necessary, from where I recommend opening long positions. Breakthrough and consolidation above the high of 1.2343 will also lead to further growth of the pound in the area of 1.2387 and 1.2427, where I recommend taking the profit.
To open short positions on GBP/USD, you need:
Bears, upset by the decision of the UK Parliament, are in no hurry to return to the market. The breakthrough of the level of 1.281, without any hint of a correction, is a confirmation of this. Sellers managed to stop the bullish momentum in the area of a maximum of 1.2343, however, there are no active sales from there yet. It is best to consider new short positions after updating the levels of 1.2387 and 1.2427. The task of the bears for the second half of the day will be to reduce and consolidate under the support level of 1.281, from which new buyers of the pound will certainly return to the market.
Signals of indicators:
Moving averages
Trading is above 30 and 50 moving averages, indicating the predominance of buyers in the market.
Bollinger Bands
In the case of a decrease in the pound, the average limit of the indicator will limit the downward potential in the area of 1.2265, and you can buy on a rebound from the lower limit 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
