To open long positions on GBP/USD, you need:
The British pound managed to strengthen its positions against the US dollar and regained the resistance of 1.2861, which now acts as a support. Good news on retail sales, where the index was -3 points in November, after -10 points in October this year helped the pound also with the recovery. At the moment, the next target of GBP/USD buyers will be to update the resistance of 1.2892, the breakthrough of which will provide the pair with a return to the maximum of 1.2927, from which the whole fall began on Friday. If the bulls miss the level of 1.2861 in the second half of the day, it is best to count on new purchases only after updating the minimum of 1.2829 or open long positions immediately on a rebound from the support of 1.2800.
To open short positions on GBP/USD, you need:
The sellers still have some problems, but it is still very early to talk about the reversal of the downward correction, which was formed on November 18 this year. The best thing that the sellers of the pound will be able to do today is to return under the support of 1.2861, which will quickly push GBP/USD down to a minimum of 1.2829 and 1.2800, where I recommend taking the profits. However, another, no less important task for sellers is to maintain the resistance of 1.2892. The formation of a false breakdown at this level in the second half of the day will be a good signal to open short positions. Otherwise, it is best to sell the pound immediately on the rebound from the maximum of 1.2927.
Indicator signals:
Moving Averages
Trading returned around the 30 and 50 daily averages, indicating a possible end to the bearish trend, but it is still very early to talk about it.
Bollinger Bands
A breakthrough of the upper limit of the indicator in the area of 1.2885 will lead to a new will of the pound's growth. The downward movement will be limited by the lower level of the indicator around 1.2820.
Description of indicators
- Moving average (moving average determines the current trend by smoothing volatility and noise). Period 50. The chart is marked in yellow.
- Moving average (moving average determines the current trend by smoothing volatility and noise). Period 30. The chart is marked in green.
- MACD indicator (Moving Average Convergence / Divergence-convergence/divergence of moving averages) - EMA period 12. Slow EMA period to 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
