To open long positions on GBP/USD you need:
Bears quickly returned the market to its place after the euphoria from Juncker's statements about the possible conclusion of an agreement had dried up. At the moment, the bulls need to form a false breakdown in the support area of 1.2460, and this will be the first signal to open long positions. However, it is more likely that sellers will give way to this support, therefore it is best to count on long positions for a rebound near last week's low in the area of 1.2393. The main goal of buyers will be a breakthrough and consolidation above the resistance of 1.2522, which will lead to an update of the upper boundary of the current side channel in the region of 1.2586, where I recommend taking profits.
To open short positions on GBP/USD you need:
Bears will be active after an upward correction to the resistance area of 1.2522, where the formation of a false breakdown will be the first signal to open short positions in the expectation of a further decline in the pair and a break of the low of 1.2460. After consolidating below this resistance, we can expect GBP/USD to return to a larger support of the previous week - 1.2393, where I recommend taking profits. If the bears do not have enough strength to keep the pair below 1.2522, it is best to consider new short positions from the upper boundary of the side channel of 1.2586.
Signals of indicators:
Moving averages
Trading is below 30 and 50 moving averages, indicating a slight advantage to pound sellers.
Bollinger bands
A break of the lower boundary of the indicator at 1.2460 will increase pressure on 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
