To open long positions on GBPUSD, you need:
Buyers of the pound missed the level of 1.2408 and could not return to it in the first half of the day even after the release of good data on the number of applications for unemployment benefits in the UK, which was much less than the forecast of economists. However, the data on the level of household income quickly returned pressure on the British pound, continuing the downward trend that I spoke about in the morning forecast. The bulls also failed to cling to the support of 1.2358. In the second half of the day, the important task will be to return to this range, which may lead to a larger upward correction of the pair to the maximum of 1.2408, where I recommend fixing the profit. If the pressure on GBP/USD persists further, and this is more likely, it is best to return to long positions only after the support test of 1.2294, counting on a rebound of 30-40 points within the day. Or buy the pound from a larger low of 1.2229.
To open short positions on GBPUSD, you need:
The bears coped with the task perfectly, forming a false breakout in the resistance area of 1.2408, from which I recommended opening short positions. This is clearly visible on the 5-minute chart. Also, sellers managed to break through to the level of 1.2358, which keeps a good downward momentum in the pair. While trading will be conducted below this range, the nearest target of the bears will be the support of 1.2294, the break of which will only increase the pressure on the pair and lead to an update of the minimum of 1.2229, where I recommend fixing the profits. In the scenario of an upward correction of the pound in the second half of the day, you can return to short positions if a false breakout is formed in the resistance area of 1.2358 or sell immediately on a rebound from the maximum of 1.2408.
Signals of indicators:
Moving averages
Trading is conducted below the 30 and 50 daily averages, which indicates that the advantage of sellers of the pound remains.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.
Bollinger Bands
In the scenario of growth of the pair, the average border of the indicator around 1.2408 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
