To open long positions on GBP / USD, you need:
On Monday, the bulls walked over stop orders from bears above the resistance of 1.2705, but they did not manage to form a larger uptrend. The main task for today's first half of the day will be a breakthrough and consolidation above 1.2714, which will lead to the formation of a larger uptrend with updating highs around 1.2762 and 1.2808, where I recommend fixing the profits. In the case of a decrease in the pound, support will be provided by 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 GBP / USD, you need:
Sellers will try to keep the pair below the resistance of 1.2714, and the formation of a false breakdown there will be a direct signal to the sales of the pound with access to the middle of the channel of 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 first half of the day, short positions can be considered to rebound from 1.2762 and 1.2808.
Indicator signals:
Moving Averages
Trade is conducted just above the 30-day and 50-day moving average, with a short-term advantage of buyers of the British pound.
Bollinger bands
In the case of a decrease in the pound, support will be provided by the lower limit of the Bollinger Bands indicator in the area of 1.2637, from which you can open low positions immediately to rebound. The upward trend may be limited by the upper limit of the channel 1.2740, from where pound sellers will return to the market.
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