To open long positions on GBP/USD, you need:
The British pound strengthened its position after the report, which pointed to the growth of the UK services sector and the return of the index above 50 points. However, the bulls have not even managed to return the pair to the resistance of 1.2925, not to mention the breakdown of this level. The formation of a false breakdown in the support area of 1.2875, which I paid attention to in my morning forecast, led to the growth of the pound, but the main goal of the bulls remains a breakthrough and consolidation above the resistance of 1.2925, which will open a direct road to the highs in the area of 1.2971 and 1.3017, where I recommend taking the profits. In the scenario of a repeated decrease in GBP/USD to the area of the low of 1.2875, it is best to buy around after updating support of 1.2845 and it is better to immediately rebound from a large area of 1.2807.
To open short positions on GBP/USD, you need:
The sellers' plans were smeared with a good report on the services sector, but their main task is to return GBP/USD under the support level of 1.2875, which will push the pound further into the area of larger lows of 1.2845 and 1.2807, where I recommend taking the profits. The further upward trend will depend on how the bears will show themselves in the support area of 1.2807. In the afternoon, a report on activity in the non-manufacturing sector of the United States is expected. If the data lead to the growth of GBP/USD, it is possible to consider new short positions on a false one after the update of the resistance of 1.2925, but it is best to sell immediately on the rebound from the maximum of 1.2971.
Indicator signals:
Moving Averages
Trading is below the 30 and 50 daily averages, which indicates a possible further decline in the pound.
Bollinger Bands
In the scenario of a decline in the pound, the lower border of the indicator around 1.2865 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
