To open long positions on GBP/USD you need:
The sharp rise in the pound is replaced by a fall. It has long been a familiar scenario for us. At present, a breakthrough of resistance at 1.2732 will be a signal to buy the pound with a close to yesterday's high of 1.2795, where I recommend taking profits. In case the GBP/USD declines in the first half of the day, it is best to rely on purchases only after the formation of a false breakdown around 1.2674 or a rebound from the new low of 1.2625. Any news from the UK Parliament can lead to a surge in the volatility of the pound, so do not forget about the placement of stop orders.
To open short positions on GBP/USD you need:
The bears managed to build a new descending channel, not letting the bulls update the Tuesday high yesterday. An unsuccessful consolidation above resistance of 1.2732 will be another signal to sell GBP/USD with the aim of breaking through and consolidating below support 1.2674, which will lead to a larger decline of the pound to the area of the low of 1.2625 and 1.2569, where I recommend to lock in profits. In case of growth above 1.2732 in the first half of the day, short positions can be returned to the rebound from the resistance of 1.2795.
Indicator signals:
Moving averages
The trade moved below the 30-day and 50-day moving averages, which indicates the further formation of the bear market.
Bollinger Bands
The break of the lower limit of the Bollinger Bands indicator in the area of 1.2700 will lead to selling the pound. The upward correction will be limited by the upper limit of the indicator in the area of 1.2765, from where you can sell immediately on the rebound.
Indicator description
- Moving Average (average sliding) 50 days - yellow
- Moving Average (average sliding) 30 days - green
- MACD: fast EMA 12, slow EMA 26, SMA 9
- Bollinger Bands 20
