To open long positions on GBPUSD, you need:
In the first half of the day, several signals were formed to buy the British pound. Let's look at the entry points in more detail. If you look at the 5-minute chart, you will see that after a downward correction to the support area of 1.2949, a false breakout was formed, which led to the growth of the pound in the resistance area of 1.3008. It was from the area of 1.2949 that I recommended buying the pound in my morning forecast. Now the bulls are trying to take control of the 1.3008 range, breaking through and fixing on it, which is an additional buy signal. While trading will be conducted above this area, you can count on the continued growth of the European currency to the maximum area of 1.3075, where I recommend fixing the profits. The further point will be the resistance of 1.3138. If the pair returns to the level of 1.3008 in the second half of the day, I recommend that long positions be postponed until the low of 1.2949 is updated, and only if a false breakout is formed. If there is no activity from the bulls, it is best to buy immediately for a rebound from the support of 1.2893 in the expectation of a correction of 30-40 points within the day.
To open short positions on GBPUSD, you need:
The bears remain in limbo, and the initial task for the second half of the day is to return the pair to the level of 1.3008, which they missed in the first half of the day. Only this scenario forms a signal to open short positions, which will lead to a decrease in the pair to the support area of 1.2949, where I recommend fixing the profits. If the bulls continue to bend their line, then it is best to look at short positions from the resistance of 1.3075 or sell immediately for a rebound from the larger maximum of 1.3138 in the expectation of a correction of 30-40 points within the day.
Signals of indicators:
Moving averages
Trading is conducted above the 30 and 50 daily averages, which indicates further growth of the pound.
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 case of a decline in the pair, the lower border of the indicator in the area of 1.2949 will provide support.
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
- Non-profit traders are speculators, such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet certain requirements.
- Long non-commercial positions represent the total long open position of non-commercial traders.
- Short non-commercial positions represent the total short open position of non-commercial traders.
- Total non-commercial net position is the difference between short and long positions of non-commercial traders.
