To open long positions on GBP/USD is required:
The pound collapsed after May announced the postponement of the Brexit vote and did not name the exact date. I don't recommend rushing with the purchases of GBP/USD. Long positions can be seen after the formation of a false breakout in the area of 1.2537 or a rebound from the low of the week of 1.2505. The main task of the bulls will be to return and consolidate at the resistance level of 1.2614, which will update the highs of 1.2654, where I recommend to lock in the profit.
To open short positions on GBP/USD is required:
A return to the support level of 1.2569 will be a direct signal to sell the pound in order to return to the area of 1.2537 and 1.2505, where I recommend taking profit. In the event of a continuation of the upward correction, which may be formed after the release of good data on the UK labor market, it is best to consider new short positions after the test of the high of 1.2614 or on a rebound from the resistance of 1.2654.
Indicator signals:
Moving averages
Trading is conducted under 30-day and 50-day moving averages, which indicates the bearish nature of the market.
Bollinger Bands
The upward correction in the pair will be limited by the upper limit of the Bollinger Bands indicator in the area of 1.2654, the test of which will be a sell signal. In case the pound decreases, you can look at long positions on the rebound from the lower border, which is located in the area of 1.2505.
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
