To open long positions on GBP/USD, you need:
The technical picture in the British pound has not changed amid the lack of fundamental data and news on Brexit. It is best to return to long positions after the support test of 1.3034, however, the main goal of the bulls will be a breakthrough and consolidation above the resistance of 1.3080, which will return the upward momentum to the market and lead to an update of the highs in the area of 1.3118 and 1.3160, where I recommend fixing the profits. In the case of a decline in GBP/USD under the support level of 1.3034, long positions can be opened for a rebound from the minimum of 1.2988.
To open short positions on GBP/USD, you need:
An unsuccessful consolidation above the resistance of 1.3080 will be a signal to sell the British pound, but the main task will be to return to the support level of 1.3034, the breakthrough of which will resume a larger downward wave in GBP/USD with an update of the lows in the area of 1.2988 and 1.2950, where I recommend fixing the profits. In the scenario of the pound growth above the resistance of 1.3080 in the second half of the day, it is best to consider new short positions on the rebound from the high of 1.3118 and 1.3160.
Indicator signals:
Moving Averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the half-day market with a bearish advantage.
Bollinger bands
Breakthrough of the lower border of the Bollinger Bands indicator in the area of 1.3030 will lead to a new wave of the pound decline. The growth will be limited by the upper border of the channel around 1.3075.
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
