To open long positions on GBP/USD you need:
Currently, bulls are required to return to the resistance of 1.2668, which acts as the middle of the channel. Demand for the pound will return only in such a scenario, which will lead to an update of the upper boundary of the side channel of 1.2715, where I recommend taking profits. In the event of a further decline in GBP/USD, only a test of the support range of 1.2615-1.2620 can return buyers to the market. Otherwise, you can open long positions immediately to rebound from a low of 1.2567.
To open short positions on GBP/USD you need:
Sellers will try to keep the pair below the resistance of 1.2668, and the formation of a false breakdown there will be a direct signal to sell the pound with access to the lower boundary of the channel 1.2620, where the first profit taking will take place. Larger sellers will count on updating the new weekly low around 1.2567, where I recommend taking profits. In case of growth above 1.2668 in the first half of the day, short positions can be considered to rebound from 1.2715.
Indicator signals:
Moving averages
Trading is conducted just below the 30 and 50 day moving averages, with the short-term advantage of sellers of the British pound.
Bollinger Bands
In case of a decrease in the pound, the support will be provided by the lower limit of the Bollinger Bands indicator in the area of 1.2621, from which it is possible to open long positions. The upward trend may be limited by the upper limit of the channel 1.2668, from where sellers of the pound will return to the market.
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
