To open long positions on GBP/USD, you need:
Buyers of the pound coped with the task and managed to return the pair to the resistance of 1.2949 yesterday, which is now the main focus. Given that today there is no important news on the UK, the calculation will be on the publication of the next opinion polls that can support the pound, and the breakdown of the level of 1.2949 will lead to the demolition of several stop orders of sellers and a more powerful upward momentum. The bulls will aim for highs around 1.2983 and 1.3017, where I recommend taking the profits. In the scenario of decline, you can count on the formation of a false breakout near the middle of the side channel 1.2918, but to open long positions immediately on the rebound is best from the minimum of 1.2883, which now acts as the lower border of the side channel.
To open short positions on GBP/USD, you need:
Sellers may have serious problems after the breakout of the resistance of 1.2949, so they will try their best to form a false breakout in the first half of the day, which will keep the pair in the side channel and will be a kind of signal to open short positions. In this scenario, we can expect a downward correction to the support area of 1.2918, and the longer-term goal will be the test of the minimum of 1.2883, where I recommend taking the profits. If the bullish momentum leads to a breakout of the resistance of 1.2949, in this case, it is best to count on selling after the update of the maximum of 1.2983, and you can sell the pair for a rebound in the area of 1.3017.
Indicator signals:
Moving Averages
Trading is just above the 30 and 50 moving averages, but so far this does not give an advantage to buyers over sellers.
Bollinger Bands
Breaking the upper limit of the indicator at 1.2949 will lead to a more powerful bullish impulse. A similar break of the lower border at 1.2918 will increase the pressure on the pound.
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). Fast EMA period 12. Slow EMA period to 26. SMA Period 9.
- Bollinger Bands (Bollinger Bands). Period 20.
