To open long positions on GBPUSD, you need:
The British pound is actively fighting for the level of 1.2339, which I drew attention to in my morning review. Terrible data on the reduction of the UK services sector put pressure on the pair in the first half of the day, but it was not possible to achieve a larger downward trend. At this moment, the bulls regained the level of 1.2339, and trading above this range can be expected to continue the upward correction in the district resistance of 1.2416, and then to test the high of 1.2476, where I recommend taking the profit. In the scenario of a repeated return of GBP/USD to the support of 1.2339, it is best to look at long positions only for a rebound from the weekly low in the area of 1.2264, and then, in the calculation of an upward correction of 30-40 points within the day.
To open short positions on GBPUSD, you need:
Sellers have tried several times to resume the bearish trend below the level of 1.2339, but so far they have not been able to do so. One of the advantages is the inability of the bulls to update the highs of yesterday, which keeps the market on the side of sellers of the pound. As soon as the bears once again push the pair under the support of 1.2339, and fix themselves below it, you can open short positions in order to continue the decline of GBP/USD to the area of the minimum of 1.2264 and a larger fall of the pair to the support of 1.2173, where I recommend fixing the profits. In the scenario of GBP/USD growth in the second half of the day, you can return to short positions after testing the maximum of 1.2416, or even higher, from a large resistance of 1.2476, counting on correction of 30-40 points within the day.
Signals of indicators:
Moving averages
Trading is conducted around the 30 and 50 daily averages, which indicates market uncertainty with a slight advantage of bears.
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
A break in the lower border of the indicator around 1.2295 will increase the pressure on the pair. A break of the upper limit in the area of 1.2365 will lead to a larger upward correction.
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
