To open long positions on GBP / USD, you need:
The situation did not change by the afternoon. It is best to return to long positions in the pound by updating the next monthly lows. Formation of a false breakdown in the support area of 1.2872 with confirmation of divergence on the MACD indicator will be the first signal to buy GBP / USD. Otherwise, it is best to open long positions after updating the area of 1.2831 and 1.2790. The task of buyers for the second half of the day will be the return and consolidation above the resistance of 1.2911, which will lead to an increase in the pair to the upper boundary of the downward channel and to an update of the maximum of 1.2947, where I recommend fixing the profit.
To open short positions on GBP / USD, you need:
Bears formed a false breakdown in the resistance area of 1.2911, but this did not lead to a large sale of the pound. However, while trading is conducted below this range, we can count on a further decline in the pair in order to repeat the test and breakdown of support at 1.2872, which will lead to a new downward wave with the renewal of minimums at 1.2831 and 1.2790, where I recommend fixing the profits. In the case of growth above 1.2911 in the second half of the day, it is possible to count on short positions after updating the larger resistance at 1.2947, where the upper limit of the downward price channel is also located.
Indicator signals:
Moving Averages
Trade is conducted under the 30- and 50-day average, which indicates the formation of a downtrend on the pound.
Bollinger bands
The upper limit of the Bollinger Bands indicator around 1.2900 limits the upward potential, and the breakdown of the lower border around 1.2872 will be a direct signal to sell the pound.
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
