To open long positions on GBP/USD, you need:
The bulls are working out the divergence on the MACD indicator in the area of the morning support level of 1.2980, and while the trade is conducted above this range, we can expect the end of the bearish trend. The main task of buyers for the second half of the day is to return to the resistance of 1.3028. Only then can we expect an upward correction in the area of the maximum of 1.3074 and 1.3125, where I recommend fixing the profit. In the case of a repeated test of a minimum of 1.2980, it may breakdown and the continuation of the fall of the pound. In this scenario, the best way to return to long positions is to rebound from the levels of 1.2934 and 1.2905.
To open short positions on GBP/USD, you need:
Bears will try to break below the support of 1.2980, which will lead to a new wave of short positions in the trend with access to the lows of 1.2934 and 1.2905, where I recommend fixing the profits. Also, a good signal to sell in the second half of the day will be an unsuccessful consolidation above the resistance of 1.3028, but I recommend to open short positions immediately on the rebound only after updating the maximum of 1.3074.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a bearish advantage.
Bollinger Bands
The volatility of the indicator has decreased, which does not give signals on entering 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
