To open long positions on GBP / USD, you need:
Weak data on the labor market did not allow the pound to resume growth, and only a real breakthrough and consolidation above resistance 1.2926 will give a new impetus to GBP / USD, which will lead the pair to a new maximum of 1.2986 and 1.3047, where I recommend fixing the profits. In the case of a downward correction, which can be observed this afternoon, amid lack of clarity in negotiations between the British Prime Minister and EU representatives, long positions in GBP / USD can be returned to a false breakdown from support 1.2868 or rebound from a minimum of 1.2812.
To open short positions on GBP / USD, you need:
The bears managed to form a false breakdown and return below the support level of 1.2926 in the first half of the day, and while the trade is below this range, there is a possibility of a decrease in the pound, which will lead to a larger scale to the minimum area of 1.2868 and 1.2812, where I recommend fixing the profit. In the case of continued GBP / USD growth in the second half of the day or news on Brexit, new short positions can be considered after updating the highs of 1.2986 and 1.3047.
Indicator signals:
Moving Averages
Trade is conducted in the area of 30-day and 50-medium moving, which indicates the lateral nature of the market or the decline of the pound after the unsuccessful breakdown of the level of 1.2930.
Bollinger bands
Only a breakthrough of the upper limit of the Bollinger Bands indicator around 1.2945 will lead to a net increase in the pound. The lower limit in the 1.2892 area will limit the fall, but its breakthrough will lead to a strong decline in GBP / USD.
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
