To open long positions on GBPUSD, you need:
It seems to have started what was before the results of the parliamentary elections in Great Britain when the pound was bought just without stopping, and everyone was waiting for a downward correction. The same thing is now happening with sales, and it is not clear where to look for the bottom. Bulls will try to protect the support of 1.2930 today, but only the formation of a false breakout on it will be a signal to open long positions. For a more reliable buying scenario, it is best to postpone until the lows of 1.2879 and 1.2831 are updated. No less important task of the bulls will be the return and consolidation at the resistance level of 1.3000, from where we can expect a larger upward correction to the levels of 1.3074 and 1.3128, where I recommend taking the profits.
To open short positions on GBPUSD, you need:
The pair were not deterred from falling by the statements of British Prime Minister Boris Johnson that a trade agreement with the EU would be developed according to the interests of all parties. The only thing left for the bears today is to return the pound under the support of 1.2930, which forms a new downward channel and will lead to further preservation of the trend with the exit to the area of lows of 1.2879 and 1.2831, where I recommend taking the profits. In the scenario of GBP/USD growth in the first half of the day, you can return to short positions on a false breakout near the maximum of 1.3000, or sell the pound immediately on a rebound from the resistance of 1.3074.
Indicator signals:
Moving Averages
Trading is conducted below the 30 and 50 moving averages, which indicates a possible further decline in the pound.
Bollinger Bands
Support will be provided by the lower border of the indicator in the area of 1.2900, while growth will be limited to the upper level of the indicator in the area of 1.2989.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence-Convergence / Divergence of moving averages) Fast EMA Period 12. Slow EMA Period 26. SMA Period 9
- Bollinger Bands (Bollinger Bands). Period 20
