To open long positions on GBPUSD, you need:
Another attempt of the bulls to break above the resistance of 1.3167 today in the first half of the day did not bring success, after which the major players took a wait-and-see position based on good opinion polls indicating the victory of the Conservative Party of Great Britain in the elections to be held on December 12. The main goal is to break through and consolidate above the resistance of 1.3167, which will open a direct road to the area of highs of 1.3227 and 1.3265, where I recommend taking the profits. If opinion polls point to a decline in the UK Conservative Party's leadership, the pressure on the pound could intensify. In this case, it is best to open new long positions only after the formation of a false breakout in the resistance area of 1.3125 or after the update of the lows of 1.3084 and 1.3037.
To open short positions on GBPUSD, you need:
An unsuccessful attempt to rise above the resistance of 1.3167 failed to return new sellers of the pound to the market, as further large growth to new monthly highs is not ruled out. However, in the short term, while trading is below 1.3167, there is a theoretical chance for the continuation of the downward correction in the area of the first support of 1.3125, where I recommend taking the profits. However, you can open short positions immediately on the rebound from the highs of 1.3227 and 1.3265. If the bears manage to break below the level of 1.3125 in the afternoon, this will increase the pressure on the pair and lead to a downward correction of GBP/USD in the area of lows of 1.3084 and 1.3037.
Indicator signals:
Moving Averages
Trading is above the 30 and 50 daily averages, indicating an upward trend.
Bollinger Bands
In the case of a decline in the pound, the average border of the indicator around 1.3125 will provide support. Breaking the upper limit of the indicator in the area of 1.3175 will strengthen the demand for the pound.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence - Moving Average Convergence / Divergence). Fast EMA period 12. Slow EMA period 26. SMA period 9.
- Bollinger Bands (Bollinger Bands). Period 20.
