To open long positions on GBP / USD, you need:
As UK parties prepare for a crucial political race, volatility in the market is gradually decreasing. Buyers of the pound managed to regain the level of 1.2870, which allows us to count on further growth of the pair in the short term. As long as trading is conducted over this range, the bulls will aim for the upper border of the side channel at 1.2943, where it is recommended taking the profits. However, growth above 1.2943 is possible only after the Federal Reserve cuts interest rates at its meeting today. If buyers again miss the support of 1.2869, it is best to count on new purchases from the lower border of the channel in the area of 1.2807.
To open short positions on GBP / USD, you need:
The task of the pound sellers will be to return the level of 1.2869, and the only consolidation below this range will be a signal to open short positions. A more important goal of the bears is to test and break the support of 1.2807, which can be achieved only if the Fed leaves rates unchanged today, pausing the cycle of their reduction. In this case, the collapse of GBP/USD in the area of lows 1.2735 and 1.2664 is not excluded. If the demand for the pound persists, only the formation of a false breakdown near the upper border of the side channel 1.2943 will be a signal to sell. Otherwise, it is best to open short positions on a rebound from the monthly high of 1.3012.
Indicator signals:
Moving Averages
Trading is conducted around 30 and 50 daily averages, which indicates the lateral nature of the market.
Bollinger Bands
A break of the upper border of the indicator in the area of 1.2910 will lead to a new wave of growth for the pair. A low test at 1.2840 could limit the downside potential of the pound.
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
