To open long positions on GBP/USD, you need:
Buyers made a false breakdown in the morning support area of 1.2723, but did not even manage to get to the resistance of 1.2766, near which the entire upward correction could have ended. In the case of a breakdown of the minimum of 1.2723 in the second half of the day, it is best to consider long positions to rebound from a larger level of 1.2672. The goal of the bulls remains the resistance of 1.2766, the consolidation of which will lead to the formation of a major upward correction with the update of the highs of 1.2812 and 1.2858, where I recommend fixing the profit.
To open short positions on GBP/USD, you need:
A break and consolidation below the support of 1.2723 will lead to a new wave of short positions in GBP/USD with an exit to the lows of 1.2672 and 1.2614, where I recommend taking profit. However, do not forget that the pound has been going down for two weeks without a single correction. Therefore, the best scenario will be sales after an upward correction from the resistance of 1.2766, under the condition of a false breakdown, or a rebound from the maximum of 1.2813.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger Bands
The volatility of the indicator is low, which does not give signals to enter the market.
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
