To open long positions on GBP/USD, it is required:
There is no news on Brexit, which makes traders more cautious about further growth. On the other hand, the pound draws a good technical model for the continuation of the upward trend. You can count on new purchases of the pound after breaking through and consolidating above the resistance of 1.2659, which will lead to further growth with the update of yesterday's high near 1.2714. However, the main goal will be the test of resistance at 1.2752, where I recommend to take profit. In case the GBP/USD decreases 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 1.2616 or a rebound from the low of 1.2570.
To open short positions on GBP/USD, it is required:
The formation of a false breakout at the resistance level of 1.2659, or a breakout and consolidation below the support of 1.2616, will be a signal to sell the pound in order to decrease to the low area of 1.2570, where I recommend to lock in the profit in the first half of the day. In case of further upward correction, you can look at short positions on the rebound from large highs in the area of 1.2714 and 1.2752.
Indicator signals:
Moving averages
Trading moved to the area of 30-day and 50-day moving averages, which indicates the lateral nature of the market and the uncertainty of traders with a further direction.
Bollinger Bands
The upward correction in the pair will be limited by the upper limit of the Bollinger Bands indicator in the area of 1.2680, the test of which will be a sell signal. The breakout of the lower limit of the Bollinger Bands indicator in the area of 1.2615 will be a signal to sell the pound.
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
