To open long positions on GBP/USD you need:
News that March 29 will not be the deadline when the UK will leave the EU, supported the British pound on Friday after a weak report on GDP. At the moment, buyers need to stay above the support level of 1.2813, and the formation of a false breakdown there will be a signal to open long positions in order to update the resistance at 1.2868. Breakthrough of this range will open a direct road to the the area of a high of 1.2929. In case of a decrease in the pound below the support level of 1.2813, it is best to consider long positions for a rebound from 1.2758.
To open short positions on GBP/USD you need:
An unsuccessful consolidation above the resistance of 1.2868 will be the first signal to open short positions in the pound, but the main task will be the breakdown and consolidation below the support of 1.2813, which will sharply pull down the GBP/USD to a low in the area of 1.2758 and 1.2708, where I recommend to fix the profit. In case of further uptrend and breakout of the high at 1.2868, it is better to consider short positions from the levels of 1.2929 and 1.2990.
Indicator signals:
Moving averages
Trade is conducted above the 30-day and 50-day moving averages, which indicates the bullish nature of the market, and a downward correction to these moving averages may return new buyers.
Bollinger bands
Volatility is very low, which does not provide signals for entering 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
