To open long positions on the GBP / USD pair, you need:
The technical picture has not changed compared with the morning forecast and the option of continuing the growth of the British pound remains quite good. However, this requires the completion of a number of divergences on various indicators, as well as, a correction to the support area of 1.3266, to which the bears have not reached today in the morning. The main goal of the bulls is to breakthrough and consolidate above the resistance of 1.3346, which will lead to the renewal of new monthly highs around 1.3386 and 1.3437, where I recommend taking profits.
To open short positions on the GBP / USD pair, you need:
The demand for the pound is declining but to go against a strong uptrend is not quite the right decision. Sellers need to form a false breakdown in the area of resistance 1.3346. Only after such an event, you can count on a larger downward correction in the pound to the support area of 1.3266 and 1.3204, where I recommend taking profits. In the scenario of further growth with the trend, you can open short positions from a maximum of 1.3386 and better from a larger area of 1.3437.
More in the video forecast for February 28
Indicator signals:
Moving averages
Trading is above 30- and 50-moving averages, which indicates the bullish nature of the market but the price may move below the moving averages at any time, which will lead to a larger downward correction in the pound.
Bollinger bands
Bollinger Bands indicator volatility is very low, which does not give signals on market entry.
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
The material has been provided by InstaForex Company - www.instaforex.com