To open long positions on GBP/USD you need:
Yesterday, the pound resumed growth after Labour leader Jeremy Corbyn held a meeting at which he openly spoke out against the "hard" Brexit and the policies of British Prime Minister Boris Johnson. However, it was not possible to gain a foothold above weekly highs. At the moment, given the lack of important fundamental statistics, bulls will try to continue the upward trend and get to the resistance level 1.2301, from where a direct road opens to the highs of 1.2343 and 1.2387, where I recommend taking profit. However, do not forget that any negative Brexit news will quickly return new sellers to the market. Therefore, the optimal scenario for opening long positions will be the support level of 1.2243, subject to the formation of a false breakdown there, as well as the area of 1.2195, which is located below the lower boundary of the current rising channel.
To open short positions on GBP/USD you need:
Bears will try to maintain the level of 1.2301, and only the formation of a false breakdown there in the morning will allow the resumption of the downward correction in the pound in order to update support at 1.2243, which runs slightly below the moving average. However, a more important task for sellers will be to break through and consolidate below this level, which will lead to a further decrease in GBP/USD to the support area of 1.2195, where I recommend taking profit. In the scenario of a continuation of the upward trend, and growth above the resistance of 1.3201, it is best to return to short positions to rebound from a resistance of 1.2343 and 1.2387.
Signals of indicators:
Moving averages
Trading is conducted above 30 and 50 moving average, which indicates the pair's growth in a trend.
Bollinger bands
In case of pound growth, the upside potential will be limited by the upper boundary of the indicator in the area of 1.2301. A break of the lower border at 1.2255 will increase pressure on the British 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
