To open long positions on GBP/USD, you need:
The technical picture has not changed compared with the morning forecast. Buyers of the pound, to stop the downward trend, need a return and consolidation above the level of 1.2930, which they lost yesterday in the afternoon after a small upward correction. Only above the range of 1.2930 can we expect a more substantial demand for the pound, which will lead to an update of the highs of 1.2983 and 1.3037, where I recommend fixing the profits. In the scenario of reducing GBP/USD and further, long positions are best to look at the rebound from the low of 1.2877-70.
To open short positions on GBP/USD, you need:
The lack of news on Brexit and disagreements between the UK parties are increasing the pressure on the pound. The goal of sellers today is to form a false breakdown in the resistance area of 1.2930, which will be the first signal to open short positions that could easily lead GBP/USD to the area of minimums 1.2870 and 1.2812, where I recommend fixing the profits. In the case of a pound rising above the resistance of 1.2930, short positions can be considered to rebound from a high of 1.2983.
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 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
