To open long positions on GBP/USD, you need:
Buyers of the pound formed a new support level of 1.2687, which should help them break above the resistance of 1.2744 in the afternoon, but much will depend on the performance of Theresa May. Fixing above 1.2744 will lead to the demolition of stop orders of sellers and to an update of the maximum of 1.2802, where I recommend fixing the profits. With a further decline and breakthrough of the support of 1.2687, it is best to return to long positions after the test of the minimum of 1.2614 and 1.2564.
To open short positions on GBP/USD, you need:
An unsuccessful performance of Theresa May can lead to a repeat test and the breakdown of the support of 1.2687, which will only increase the pressure on the pound and collapse the pair to the lows of 1.2614 and 1.2564, where I recommend fixing the profits. In case of growth above 1.2744 and good support from buyers, you can take a closer look at short positions after the resistance test of 1.2744 or at a rebound from the maximum of 1.2802.
Indicator signals:
Moving Averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates a slowdown in the downward trend.
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
