To open long positions for GBP/USD, it is required:
From a new wave of GBP/USD holds only the area of 1.2770. The formation of a false breakout at this level in the first half of the day will signal the opening of long positions with the main goal of returning and consolidating above 1.2816, which will keep hopes for the pound's growth in the short term. If the GBP/USD falls below the support level of 1.2770, it is better to consider new long positions at the new monthly lows around 1.2694 and 1.2660.
To open short positions for GBP/USD, it is required:
An unsuccessful consolidation above the resistance of 1.2816 will be a signal to open short positions in order to decrease to the area of the first support of 1.2770, the breakdown of which will lead to a bigger selling of the GBP/USD with the test of monthly lows in the area of 1.2694 and 1.2660, where I recommend taking profits. In case of a return to the resistance level of 1.2816, which was formed yesterday in the second half of the day, and which coincides with the average moving, it is best to return to short positions in the GBP/USD again to rebound from the weekly high of 1.2875.
Indicator signals:
Moving averages
Trading has moved under the 30-day and 50-day moving average, which is a bad signal for buyers of the pound.
Bollinger Bands
The lower limit of the Bollinger Bands indicator in the area of 1.2755 can keep the pound from falling, which will lead to the formation of a false breakout at 1.2770 and, accordingly, to purchases. In the event of an upward correction, just above 1.2816 and moving averages, the upper limit of the Bollinger Bands 1.2846 indicator passes, which will limit the upward potential of the pound.
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
