To open long positions on GBP/USD you need:
Despite the pound's growth, the further upward potential is limited by political issues related to the election of Great Britain's prime minister, which could turn out to be hard Brexit supporter Boris Johnson. At the moment, buyers need a breakdown and consolidation above the resistance of 1.2537, which will lead to the renewal of highs around 1.2585 and 1.2639, where I recommend taking profits. With a downward correction scenario in the first half of the day, long positions can be returned to a false breakdown from a support of 1.2503, as well as to rebound from a larger low in the area of 1.2469.
To open short positions on GBP/USD you need:
Pound sellers will expect good inflation in the US and a false breakdown in the resistance area of 1.2537, which will lead to a downward correction in the support area of 1.2503. However, only a breakdown of this area will return faith to the market for a further drop in GBP/USD with the renewal of lows around 1.2469 and 1.2439, where I recommend taking profits. With further growth in the new trend, short positions are best considered at the test of highs of 1.2585 and 1.2639.
Indicator signals:
Moving averages
Trading is conducted above 30 and 50 moving averages, which indicates a trend change.
Bollinger bands
If the pound goes down, support will be provided by the lower limit of the indicator around 1.2485.
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
