To open long positions on GBP / USD, you need:
Today, it is best to count on long positions in the pound after the formation of a false breakdown in the middle of the channel of 1.3052, with a rebound from the 30-day moving average. The main task of buyers will be a breakthrough and consolidation above the resistance level of 1.3101, which will lead to a larger increase in GBP / USD with access to the highs of 1.3145 and 1.3186, where I recommend fixing the profits. In the case of a decrease in the pound in the first half of the day below the level of 1.3052, long positions can be opened to rebound from the support of 1.3011.
To open short positions on GBP / USD, you need:
An unsuccessful consolidation above the resistance level of 1.3101 will be a good signal to sell the pound based on the breakdown of support at 1.3052, which will lead to the continuation of the downward trend in GBP / USD with a test of 1.3011 and 1.2962 lows, where I recommend fixing the profits. In the case of a rise above the resistance level of 1.3101 in the first half of the day, it is possible to open short positions immediately to rebound from a high of 1.3145.
Indicator signals:
Moving Averages
Trade has moved above 30 and 50 MA, but it's still very early to talk about a change in trend. Return under MA will be a signal to sell pounds.
Bollinger bands
The upside potential is limited by the upper limit of the Bollinger Bands indicator around 1.3085, however, its breakdown will be a signal to buy the pound in order to update the weekly highs. In the case of a decline, support will be provided by the lower limit of the indicator in the area of 1.3035, from where you can open long positions in a 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
