To open long positions on the GBP / USD pair, you need:
The main task for the second half of the day remains to be a breakthrough and consolidation above 1.2714, which will lead to the formation of a larger upward trend with the update of the highs in the area of 1.2762 and 1.2808, where I recommend taking profits. In the case of a decrease in the pound, support will be provided in the area of 1.2668, however, to open long positions for rebound is best at the low of 1.2721.
To open short positions on the GBP / USD pair, you need:
Sellers will try to keep the pair below the resistance of 1.2714, and the formation of a false breakdown will be a direct signal to the sales of the pound with access to the middle of the channel 1.2668, where the first profit taking will be. Larger sellers will count on updating the lower boundary of the channel in the area of 1.2621. In the case of growth above 1.2714 in the second half of the day, short positions can be considered to rebound from 1.2762 and 1.2808.
Indicator signals:
Moving averages
Trade is conducted in the area of 30-day and 50-day moving, which more indicates the formation of the lateral nature of the market.
Bollinger bands
Bollinger Bands indicator volatility has decreased, which does not give signals on market entry.
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
The material has been provided by InstaForex Company - www.instaforex.com