To open long positions for GBP/USD, it is required:
Buyers of the pound managed to stay above the support level of 1.2830, but the main task today for the first half of the day will be a breakout and consolidation above the resistance of 1.288, which will lead to a return to the upper border of the short-term side channel 1.2935-40, where I recommend taking profit. A good support for the pound can be provided by the report on the UK labor market, the output of which is expected today in the lunch area. In case the GBP/USD declines, bulls will be able to count on the formation of a false breakout in the area of 1.2830. Otherwise, it is best to open long positions for a rebound from the low of 1.2767, where the lower limit of the large downward channel passes.
To open short positions for GBP/USD, it is required:
An unsuccessful consolidation and a return to the resistance of 1.288, against the background of a weak report on the labor market, can return new sellers, which will lead to the formation of another downward wave in the pound with a repeated support test of 1.2830. The breakdown of this area will lead to a further decrease in the GBP/USD, with the exit to the lows of 1.2767 and 1.2703, where I recommend to take profit. In the event of growth above 1.2888, the upward correction potential will be limited by the upper limit of the side channel in the area of 1.2940, where you can also see sales of the pound.
Indicator signals:
Moving averages
Trading is conducted under the 30-day and 50-day average, which indicates a further decline in the pound.
Bollinger Bands
The lower limit of the Bollinger Bands indicator, located around 1.2830, may limit the downward potential in the pound. The upper limit at 1.2895 will limit the bullish correction.
Indicator description
- Moving Average (average sliding) 50 days - yellow
- Moving Average (average sliding) 30 days - green
- MACD: fast EMA 12, slow EMA 26, SMA 9
- Bollinger Bands 20
