To open long positions on GBP/USD, it is required:
The pound regained all positions after May managed to keep her position, while saying that there is progress in the negotiations on the Irish border. You can count on new purchases of the pound after breaking through and consolidating above the resistance of 1.2626, which will lead to further growth with an update of the high of yesterday in the area of 1.2673. The main target will be the resistance test of 1.2714, where I recommend to take profit. In case of a decrease in the GBP/USD in the first half of the day, you can look at long positions on a false breakout in the area of the intermediate level of 1.2579 or on a rebound from the low of 1.2529.
To open short positions on GBP/USD, it is required:
The formation of a false breakout at the resistance level of 1.2626 will be the first signal to sell the pound in order to decrease to the support area of 1.2579, where the first large buyers will show themselves. Only a breakthrough and consolidation below 1.2579 will lead to a larger sale of the GBP/USD with a return to a low of 1.2529, where I recommend to take profit. In the event of further upward correction, you can look at the short positions on the rebound from the high of yesterday 1.2673 or on the rebound from 1.2714.
Indicator signals:
Moving averages
Trading is above the 30-day and 50-day moving averages, indicating continued growth of the pound in the short term.
Bollinger Bands
The upward correction in the pair will be limited by the upper limit of the Bollinger Bands indicator in the area of 1.2673, the test of which will be a sell signal. In case the pound decreases, you can look at the long positions on the rebound from the lower border, which is located in the area of 1.2572.
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
