To open long positions on GBP / USD, you need:
Yesterday, the pound buyers managed only to form the upper limit of the downward channel. Today, it is best to rely on long positions after the formation of a false breakdown in the support area of 1.2970. However, the main task of buyers will be a breakthrough in the resistance level of 1.3029, above which opens up to new highs in the area of 1.3101, where I recommend fixing the profits. In the case of a further decline of the pound under the level of 1.2970, it is best to return to long positions from the minimum of 1.2921 or to the rebound from the new support of 1.2872.
To open short positions on GBP / USD, you need:
Bears will try to seize the moment and break through the support level of 1.2970, which will lead to a new wave of sales of GBP / USD with access to the lows of 1.2921 and 1.2872, where I recommend fixing the profits. In the case of a pound growth in the first half of the day, short positions can be returned to the rebound from the resistance of 1.3029 or even higher, from the larger high of 1.3101.
Indicator signals:
Moving Averages
Trade has moved one level with the average moving, which indicates the further formation of the lateral nature of the market.
Bollinger bands
The upside potential is limited by the upper limit of the Bollinger Bands indicator around 1.3013. A break of the lower border around 1.2961 will be a signal to open short 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
