To open long positions on GBP/USD, you need:
The lack of news on the UK election, as well as tomorrow's meeting of the Bank of England, at which forecasts of economic growth and inflation can be revised, all this pushes away interest from buyers but also does not contribute to the influx of new sellers. From a technical point of view, nothing has changed. Only the formation of a false breakdown in the support area of 1.2875 will be the first signal to open long positions. Otherwise, it is best to look at the purchases after the update of the area of 1.2845, and it is better to immediately rebound from last week's large low of 1.2807. The secondary task of the bulls will be a return to the resistance of 1.2913, fixing on which will lead to a larger upward momentum of the pair in the area of the highs of 1.2941 and 1.2971, where I recommend taking the profits.
To open short positions on GBP/USD, you need:
The plans of the bears were also not implemented today in the morning. Sellers will continue to expect the pair to consolidate below the support of 1.2875, which can push the pound to 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. Important fundamental statistics are not expected to be released today, so traders will be focused on any news regarding the UK election. A more important task for sellers, in case of growth, will be to hold the pair below the resistance of 1.2913, the formation of a false breakdown on which will act as the first signal to sell the pound. However, selling GBP/USD immediately on the rebound is best from the high of 1.2941.
Indicator signals:
Moving Averages
Trading is conducted around 30 and 50 daily averages, which indicates the formation of a lateral nature of the market.
Bollinger Bands
Volatility has decreased, which does not give signals to enter the market.
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
