To open long positions on GBP/USD you need:
Yesterday, in the afternoon, the bulls made an unsuccessful attempt to break through and consolidate above the resistance of 1.2531, after which the trade again moved to this level. Therefore, nothing has changed from a technical point of view. The bulls' return and consolidation above the resistance of 1.2351 remains the same task, since only after this we can count on a larger upward correction to the area of a high of 1.2400, where I recommend taking profit. In case the pound declines in the morning further along the trend, it is best to consider new long positions for a rebound from major support in the region of 1.2284, or after updating the low of 1.2238.
To open short positions on GBP/USD you need:
The task is still the same for sellers of the pound. The formation of a false breakdown in the resistance area of 1.2351 will lead to the formation of additional pressure on the pair and to a repeated wave of decline in the area of the low of 1.2284, where I recommend taking profit. If the pressure on the pound is larger, after a speech by representatives of the Bank of England, you can count on the renewal of 1.2238 area. If the pressure on the pair weakens in the first half of the day, and the bulls manage to regain the resistance of 1.2351, it is best to count on short positions on a false breakdown from a high of 1.2400, or sell GBP/USD for a rebound from the level of 1.2440.
Signals of indicators:
Moving averages
Trading below 30 and 50 moving averages, indicating a bear market in the short term.
Bollinger bands
A break of the lower boundary of the indicator in the region of 1.2310 will lead to increased pressure on the pair, while growth will be limited by the upper level in the region of 1.2351.
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
- Translation
