To open long positions on GBP / USD, you need:
The pound is declining against the background of big problems with the leader of the CDU and British Prime Minister Theresa May. The conservatives gave her 72 hours to resolve Brexit-related issues, otherwise, May would lose her post. The purchases should be counted only after the formation of a false breakdown in the large support area of 1.3011 in order to return and fix above the resistance level of 1.3052. In the case of a larger decline under the support of 1.3011, only new minima in the area of 1.2962 and 1.2926 will be able to stop the fall of the British pound.
To open short positions on GBP / USD, you need:
As long as trading continues below the resistance level of 1.3052, formed in the first half of the day, pressure on the pound will continue, and a break of the support level of 1.3011 will lead to the demolition of many stop orders and a quick sale of the British pound with a minimum at 1.2962 and 1.2926, where I recommend fixing the profits. In the case of GBP / USD growth in the second half of the day, short positions can be returned to the false breakdown from 1.3052 or to rebound from the maximum of 1.3101.
Indicator signals:
Moving Averages
The pair returned below the moving averages, which is a signal to sell the British pound.
Bollinger bands
The lower limit of the Bollinger Bands indicator was broken, which also indicates the presence of large sellers in the market.
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
