To open long positions on GBP/USD, you need:
The lack of guidance on Brexit and a weak fundamental background repel large sellers from the market, which buyers of the pound decided to take in the morning, having attempted to return to the resistance of 1.2460. Only after fixing above this range, we can again expect a re-jump to the high of 1.2522 and update the larger resistance of 1.2586, where I recommend taking the profit. If bears return to the market and continue to put pressure on GBP/USD, it is best to expect long positions after the support update to 1.2393 or immediately to rebound from the larger minimum of 1.2323.
To open short positions on GBP/USD, you need:
Bears need to protect the level of 1.2460 and urgently return the pair to this range. A good report on the growth of the UK public sector borrowings, which at other times would have a negative assessment, but during the crisis, Brexit can further stimulate the economy, led to the growth of the pound above the resistance of 1.2460. The first signal to open short positions on the pound will be a return to the level of 1.2460, which may occur after the report on consumer confidence in the United States. This will lead to a repeated decrease of the pair to the support area of 1.2393. However, the longer-term goal of the bears will be a minimum of 1.2323, where I recommend fixing the profits. If buyers continue to push the pound up, it is best to count on short positions in the second half of the day from the maximum of 1.2522.
Signals:
Moving Averages
Trading is conducted around 30 and 50-day averages, which indicates some bullish correction in the pair.
Bollinger Bands
In the case the pound falls in the second half of the day, the lower limit of the indicator around 1.2400 will provide support.
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
