To open long positions on GBP/USD you need:
After yesterday's statistics, pound buyers do not yet see a reason to open new long positions. Most likely, the increase in demand for the pound will occur only after the breakdown of resistance at 1.2855, which will lead to more powerful growth in the area of weekly highs of 1.2884 and 1.2910, where I recommend profit taking. Good data on retail sales in the UK, which is scheduled to be released today in the morning, and the formation of a false breakout in the support area of 1.2823 will also be a signal to open long positions. Otherwise, I recommend postponing the purchase of the pound until updating larger levels in the areas of 1.2794 and 1.2769.
To open short positions on GBP/USD you need:
Bears take advantage of the lack of news on elections in the UK, but there is no powerful downward momentum in the pair yet. The direction of the side channel at 1.2823-1.2855 and the further direction of the pound will depend on which direction. Failure to consolidate above the resistance of 1.2855 along with weak UK retail sales data will be the first signal to open short positions in GBP/USD, however, a more important target will be the low of 1.2823, a break which will raise pressure on the pound and push it to monthly support levels of 1.2794 and 1.2769, where I recommend profit taking. Positive news on the elections in the UK and the likely victory of the Conservative Party will lead to a growth of the pound in the region of highs 1.2884 and 1.2910, therefore it is better to sell for a rebound in the area of these ranges.
Signals of indicators:
Moving averages
Trade is carried out in the region of 30 and 50 moving average, which indicates market uncertainty with a further direction.
Bollinger bands
If the pair decreases, support will be provided by the lower boundary of the indicator at 1.2823. The pound will be limited by the upper level of the indicator at 1.2855.
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
