To open long positions on GBP/USD, you need:
Buyers will try to keep the support level at 1.2896 in the first half of the day, and the formation of divergence on the MACD indicator will be an additional signal for opening long positions. The main goal of the bulls will be a breakthrough and consolidation above the resistance of 1.2928, which will lead to an upward correction to the highs of 1.2961 and 1.2985, where I recommend fixing the profits. Given that the important news today on the pound is not expected, the downward trend may continue. In this scenario, it is best to look for long positions after updating the lows of 1.2855 and 1.2812.
To open short positions on GBP/USD, you need:
While trading will be below the range of 1.2928, the pressure on the pound will remain. The main task of the bears will be to test the area of 1.2896, the breakthrough of which will necessarily lead to a new wave of sales of GBP/USD with an exit to a minimum of 1.2855, where I recommend fixing the profit. In the scenario of returning to the resistance of 1.2928, it is best to consider short positions after the correction to the maximum area of 1.2961 or a rebound from a large area of 1.2985.
Indicator signals:
Moving Averages
Trading is conducted below 30 and 50 medium moving, which indicates the preservation of the bearish market.
Bollinger Bands
Support will be provided by the lower border of the indicator Bollinger Bands in the area of 1.2885, the breakthrough of which will lead to a new sale of the pound. In the case of growth, the upper limit at 1.2961 will be an excellent level for opening short positions.
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
