To open long positions on GBP/USD you need:
Yesterday, the pound flew into the abyss after EU leaders rejected Theresa May's proposal to postpone the UK's release date to 30 June. At the moment, buyers need to stay above the support level of 1.3120, and the formation of a false breakdown in that area will be a signal to open long positions. A more interesting area for bulls will be the level of 1.3068, where you can buy GBP/USD immediately to rebound. The main task will be to return and consolidate above the resistance of 1.3173, which will lead to an update of the high near 1.3222, where I recommend to lock in the profit.
To open short positions on GBP/USD you need:
Sellers of the pound will try to form a false breakdown at the resistance area of 1.3173, which will be the first signal to sell the pound, but the main goal will be a breakout and consolidation below the support of 1.3120, which will lead to selling the GBP/USD to the low of 1.3068 and 1.3004, where I recommend to take profit. With growth scenarios above 1.3173, good resistance levels can be seen in the area of 1.3222 and 1.3266, from where you can open short positions immediately to a rebound.
Indicator signals:
Moving averages
Trading is conducted below the 30-day and 50-day moving averages, which indicates the bearish nature of the market.
Bollinger bands
In case of an attempt to increase the pound's rate, the upward potential of the Bollinger Bands indicator will be limited to around 1.3175. In case the pound decreases, support will be provided by the lower limit in the area of 1.3050.
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
