To open long positions on GBP/USD, you need:
The bulls failed to return to an important resistance level of 1.3130, which scared off new buyers of the pound. The main task is to consolidate above the resistance of 1.3130, which will break the formed upper limit of the downward channel formed and give GBP/USD an impulse for a new breakthrough up to the highs of 1.3167 and 1.3227, where I recommend fixing the profits. Also, the bulls will need a lot of strength to stay above the support of 1.3078 in the afternoon. Only the formation of a false breakdown will allow us to expect a return to the maximum in the area of 1.3130. In a scenario of the breakdown of 1.3079, I recommend buying a pound immediately to rebound only after a test of the minimum of 1.3038.
To open short positions on GBP/USD, you need:
Bears coped with the morning task and did not allow the pair to break through the resistance of 1.3130, to which I paid attention. However, the main goal of the sellers is to break through and return to the support level of 1.3080, which will push the GBP/USD pair to the area of the minimum of 1.3038 and 1.2992, where I recommend fixing the profits. In the growth scenario above 1.3130, and this can only happen after the positive news on Brexit from Theresa May, you can sell after updating the maximum of 1.3167, but it is best to wait for the test level of 1.3227 and open short positions from there to rebound.
Indicator signals:
Moving Averages
Trading is conducted just below 30 and 50 moving averages, which indicates only a small advantage of the sellers of the pound.
Bollinger Bands
In the case of a company of pounds in the afternoon, the upper limit in the area of 1.3130 will act as resistance. The breakthrough of the lower limit of the indicator in the area of 1.3179 may increase the pressure on the pound.
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
