To open long positions for GBP/USD, it is required:
Buyers of the pound held the support level of 1.3098, which I paid attention to in my morning review and formed a false breakout on it, which was a signal to buy. Now their main goal is to break and consolidate above the resistance of 1.3164, where you can open long positions in the expectation of updating the high of 1.3215, where I recommend to lock in the profit. In case the pound drops in the second half of the day, or the unsuccessful growth is above 1.3164, you can count on the renewed growth of the GBP/USD again from the support level of 1.3098.
To open short positions for GBP/USD, it is required:
Sellers will try to prevent the consolidation at the resistance level of 1.3164, and the formation of a false breakout there, as yesterday, will be a signal to sell the pound in order to return to the support area of 1.3098, where I recommend profit taking. If the growth in the GBP/USD pair continues above the resistance of 1.3164, it is best to return to the short positions on the rebound from the new high of 1.3215.
Indicator signals:
Moving averages
The 30-day average broke from the bottom to the top of the 50-day moving average, and the trade moved above the average, which indicates the continuation of the formation of an upward correction. The signal for pound sales is the return of the pair under 30 and 50 day average.
Bollinger Bands
Trade moved to the upper part of the channel, and the average band in the area of 1.3120 is a good level of support, where I recommend to open long positions in case of a decline in the pound in the afternoon.
Indicator description
- Moving Average (average sliding) 50 days - yellow
- Moving Average (average sliding) 30 days - green
- MACD: fast EMA 12, slow EMA 26, SMA 9
- Bollinger Bands 20
