To open long positions on GBP/USD, you need:
Yesterday, buyers of the pound coped with the task and fixed above the resistance of 1.2697, which now acts as a support. While trading will be conducted over this range, the demand for the British pound will remain, which may lead to an update of the maximum of 1.2744 and 1.2800, where I recommend fixing the profit. In the case of a weak report on the service sector and the return of GBP/USD under the support level of 1.2697, it is best to consider long positions after updating the minimum of 1.2650 or a rebound from the area of 1.2594.
To open short positions on GBP/USD, you need:
Sellers of the pound will rely on weak data on the service sector, which will return the pair to the support level of 1.2697 and will allow to expect a decrease to the support of 1.2650 and 1.2594, where I recommend fixing the profit. In the scenario of growth in the first half of the day and a good report, the upward correction will be stopped by a large resistance level of 1.2744, from where you can look at the short positions immediately on the rebound.
Indicator signals:
Moving Averages
Trading is above 30 and 50 moving averages, indicating an upward correction in the pound.
Bollinger Bands
The average border of the indicator around 1.2697 keeps the pound from falling. In the scenario of a larger decline in GBP/USD, long positions can be considered to rebound from the lower limit in the area of 1.2665.
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
