To open long positions on GBP/USD you need:
Pound buyers showed themselves in the area of major support at 1.2480 and even managed to return to a resistance of 1.2519. While trading is above this range, the upward correction in the pound may continue, however, it is best to open new long positions after updating the area of 1.2497 or from the new monthly low around 1.2439. The main goal of the bulls will be a breakthrough and consolidation above a resistance of 1.2558, which will provide a new influx of buyers and a test of a high at 1.2590, where I recommend taking profits.
To open short positions on GBP/USD you need:
Bears need a break of support at 1.2519, which will increase the pressure on the pair and will lead to an update of last week's low in the area of 1.2483, where I recommend taking profits. However, the main goal of the pound sellers will be larger support areas in areas of 1.2439 and 1.2405. A good signal for opening short positions in GBP/USD will be an unfortunate consolidation above the resistance of 1.2558. In a different scenario, it is best to sell at a rebound from high of 1.2590.
Indicator signals:
Moving averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger bands
Pressure on the pound may be limited by the lower boundary of the indicator in the region of 1.2500, and a breakthrough of the upper level in the area of 1.2550 will provide a new wave of the pair's growth.
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
