To open long positions on the GBP / USD pair, you need:
The pound was expected to remain under pressure after the publication of the decision of the Bank of England, which kept the interest rates unchanged but lowered the forecast for economic growth. Currently, buyers are viewed in the support area of 1.2860 but opening long positions are best after returning and fixing above the resistance of 1.2910. A breakthrough of which can occur only after a speech by the Governor of the Bank of England Mark Carney. From his words, it will depend on the further direction of the pound. Returning to the support of 1.2860 may lead to a new wave of sales. In this scenario, it is best to consider new long positions from the lows of 1.2808 and 1.2752.
To open short positions on the GBP / USD pair, you need:
The bears managed to continue the downward trend in the pound after the decision of the Bank of England. If the tone of the statement from Mark Carney turns out negative, the pressure on the pound will continue and a repeated decline in the support area of 1.2860 will form a new downward wave, which will lead to a decrease in GBP / USD in the area of minimums of 1.2808 and 1.2752, where I recommend taking profits. An unsuccessful consolidation above the resistance of 1.2910 will also be a signal to sell the pound. Otherwise, short positions can be opened for a rebound from 1.2972.
More in the video forecast for February 7
Indicator signals:
Moving averages
Trade is conducted below the 30- and 50-day moving, which indicates a possible drop in the pound in the short term.
Bollinger bands
In the case of GBP/USD growth, the upside potential may be limited by the average Bollinger Bands indicator around 1.2926.
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