To open long positions for GBP/USD, it is required:
The growth potential of the pound will be limited by the resistance of 1.2831, so it is best to open long positions today in the first half of the day after a breakthrough and consolidation on this range in order to update the highs of 1.2890 and 1.2960, where I recommend taking profits. In the event of a decline, the support will be provided by the intermediate area of 1.2761, but I recommend opening long positions immediately for a rebound after the test of the low of 1.2703 and 1.2663.
To open short positions for GBP/USD, it is required:
An unsuccessful consolidation above the resistance of 1.2831 will be a signal to open short positions in order to decrease to the area of the first support of 1.2761, the breakdown of which will lead to a larger sell-off of the GBP/USD with a minimum test of 1.2703 and 1.2663, where I recommend taking profit. In case of positive news on Brexit, a breakthrough of 1.2831 will lead to an increase in the pound. In this scenario, it is best to open short positions by rebounding from the high of 1.2891 and 1.2962.
Indicator signals:
Moving averages
Trading is below the moving averages, which indicates the continuation of the downward trend in the pound.
Bollinger Bands
The upper limit of the Bollinger Bands indicator, located in the area of 1.2831, can limit the upward potential in the pound, so that the test can see the sales. In case the pound declines, the lower limit of the indicator in the area of 1.2744 will also slow down the downward movement.
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
