To open long positions on GBP/USD, you need:
All attention is shifted to the election of the Prime Minister of Great Britain and to the candidates. In this regard, major players are not in a hurry to enter the market and change the situation. Today, in the first half of the day, a return and consolidation above the resistance of 1.2950 are required, which will allow us to count on a quick return to a maximum of 1.2696 and an update of the resistance of 1.2744, where I recommend fixing the profits. With a further decrease in the pound, you can open long positions on a false breakdown from a minimum of 1.2607 or a rebound from the support of 1.2564.
To open short positions on GBP/USD, you need:
As long as trading will be below the resistance of 1.2650, the pressure on the pound will remain, and the formation of a false breakdown in the first half of the day will be a signal to sell the pound. The main task of the bears will be the support test of 1.2607, which may lead to the resumption of the downward trend and update the minimum of 1.2564, where I recommend fixing the profits. If the growth scenario is above 1.2650 in the morning, you can return to the sales of the pound immediately on the rebound from the maximum of 1.2696.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates a possible return to the market of large sellers.
Bollinger Bands
Volatility is very low, which does not give signals for 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
