To open long positions on GBP/USD you need:
After yesterday's downward correction to the area of major support at 1.2533, to which I repeatedly paid attention and from which I recommended to open long positions, the pound resumed its growth. The strengthening was also helped by the news that some members of the Conservative party of Great Britain, especially opponents of Brexit, can change their decision if the plan proposed by Boris Johnson takes into account the interests of all parties. Pound buyers now need to stay above the support of 1.2585, and the formation of a false breakdown there will be an additional signal to open long positions. A more important goal of the bulls will be the resistance of 1.2639, a break which will provide GBP/USD with new purchases, which will lead the pair to the area of highs 1.2673 and 1.2705, where I recommend profit taking. With a downward correction to the level of 1.2585, you can also return to long positions to rebound from the lows of 1.2533 and 1.2480.
To open short positions on GBP/USD you need:
Opening short positions in the pound in the current conditions would not be the right decision, as any Brexit news could trigger a new wave of growth. Only unsuccessful consolidation and the formation of a false breakout in the morning in the resistance area of 1.2673 will be a signal to sell GBP/USD with the short-term goal of decreasing to the support area of 1.2585, where I recommend profit taking. When breaking through the high of last week, it is best to consider new short positions for a rebound from the resistance of 1.2741 and 1.2781. If the bears manage to return to the support of 1.2585, after the release of weak reports on the UK labor market, the possibility of pulling down GBP/USD to yesterday's major support in the area of 1.2533 is not ruled out.
Signals of indicators:
Moving averages
Trading is above 30 and 50 moving averages, which indicates the maintenance of a bullish trend.
Bollinger bands
In case the pound declines, support will be provided by the lower boundary of the indicator in the area of 1.2533. Growth will be limited by the upper level at 1.2639.
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
