To open long positions on GBP / USD, you need:
The pound buyers did an excellent job of coping with the levels I mentioned in my morning forecast, reaching an important resistance of 1.3178, which now transformed into 1.3181. A new wave of growth will be formed only under the condition of the breakdown of 1.3181, which will be extremely difficult to do, as there is a 50-day moving average, limiting upward potential. A better scenario for long positions would be a decline in the support area of 1.3146. Otherwise, you can buy a pound immediately to rebound from the level of 1.3103.
To open short positions on GBP / USD, you need:
Sellers formed a false breakout in the resistance area of 1.3178, and as long as the trade is conducted below the range of 1.3178-1.3181, the probability of a resumption of sales of the pound will remain. The main goal will be to reduce to the support level of 1.3146, the breakdown of which will quickly return GBP / USD to a minimum of 1.3103, where I recommend fixing the profits. In the case of growth above 1.3181 on the US data, you can sell a pound to rebound from the highs of 1.3218 and 1.3253.
Indicator signals:
Moving Averages
The trade is conducted between the 30- and 50-day average, which indicates the uncertainty of the market with further direction. There are no sellers yet, however ,the price has rested against the 50-day moving average, which limits the upside potential of the pound.
Bollinger bands
The upside potential is limited by the upper line of the Bollinger Bands indicator around 1.3173. Its breakthrough will lead to a new wave of pound growth.
Description of indicators
- MA (moving average) 50 days - yellow
- MA (moving average) 30 days - green
- MACD: fast EMA 12, slow EMA 26, SMA 9
- Bollinger Bands 20
