To open long positions on GBPUSD, you need:
The parliamentary hearings on the issue of inflation were held absolutely without a trace for the pound. However, the bulls tried to get above the resistance of 1.2796 in the first half of the day. Unfortunately, nothing came of it. The task for the US session will be to consolidate above this range, which will open a direct road to the highs of 1.2847 and 1.2891, where I recommend fixing the profits. An equally important task is to protect the support of 1.2744, just above which the lower border of the current upward correction channel passes. Only the formation of a false breakdown at this level will signal the opening of new long positions. Otherwise, you can only buy the pound at the lows of 1.2707 and 1.2664, based on a rebound of 20-30 points inside the day.
To open short positions on GBPUSD, you need:
The sellers achieved their goal and returned the pound to the level of 1.2796. However, the key task will be to close the day below the support of 1.2744, which will keep the pair in a downward trend that can update the lows in the area of 1.2707 and 1.2664, where I recommend fixing the profits. In the scenario of an upward correction, only the formation of a false breakdown in the resistance area of 1.2847 will signal the opening of short positions. However, I recommend selling immediately for a rebound from a maximum of 1.2891. Given the absence of important fundamental statistics on the US economy in the afternoon, the direction of the pound will depend on any news on the negotiations between the EU and the UK.
Signals of indicators:
Moving averages
Trading is conducted in the area of 30 and 50 daily averages, which indicates a possible change in the short-term trend to an upward one.
Bollinger Bands
A break of the lower border of the indicator in the region of 1.2744 will increase the pressure on the pair. A break of the upper border of the indicator at 1.2810 will lead to a new wave of pound growth.
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
