To open long positions on GBP/USD you need:
Pound buyers are required to save the situation in the region of the lower boundary of the rising channel of 1.2700. Good data on the UK economy, with the formation of a false breakdown at this level, will be the first signal to open long positions based on the trend's continuation and the update of the highs of 1.2735 and 1.2765, where I recommend taking profits. Under the scenario of reducing the pound under the support of 1.2700, it is best to treat long positions with caution since the trend will be broken. Good support levels are seen at 1.2673 and 1.2644.
To open short positions on GBP/USD you need:
Pound sellers will expect the formation of a false breakdown in the resistance area of 1.2735, and weak UK GDP data will push the pound below the support of 1.2700, which will lead to a big sale to 1.2673 and 1.2644, where I recommend taking profits. With growth above 1.2735, buyers can push GBP/USD in the area of last week's highs to 1.2765 and 1.2795, from where you can sell directly to a rebound.
Indicator signals:
Moving averages
Trade is conducted in the region of 30 and 50 moving averages, which indicates the lateral nature of the market and the possible return of sellers.
Bollinger bands
In case the pound increases, the average border of the indicator in the 1.2725 area as well as the upper level in the 1.2760 area will act as resistance. A break of the lower border in the 1.2700 area will be a signal to sell the pound.
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
