To open long positions on GBPUSD, you need:
There are no buyers in the pound, and this is clearly seen in the activity in the support area of 1.2019, which I paid attention to in my morning forecast. The Bank of England's proposed measures to support the economy and companies suffering from the impact of the coronavirus further weaken the pound's position in the face of an impending crisis. The breakout of the support on 1.2019 led to the formation of a new major wave of decline in the British pound to the area of historical lows. At the moment, I recommend that you refrain from buying the British pound until the nearest support levels are determined.
To open short positions on GBPUSD, you need:
Bears easily pushed through the support of 1.2019, and there were no special problems from buyers in the area of 1.1975 and 1.1935, which led to the continuation of the downward trend of the British pound. At the moment, the bears will focus on the support test of 1.1880, the break of which will open a direct path to the minimum of 1.1790 and 1.1750, where I recommend fixing the profits. In the scenario of an upward correction, bears will try to form a false breakdown in the resistance area of 1.1935, and it is best to open short positions immediately on a rebound from the level of 1.2020.
Signals of indicators:
Moving averages
Trading is below the 30 and 50 daily averages, which indicates that the bearish trend is continuing.
Bollinger Bands
In the case of an upward correction, the average border of the indicator in the area of 1.2063 will act as a resistance.
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
