To open long positions on GBP/USD, you need:
Given that many markets are closed today due to Easter Monday, buyers of the British pound are unlikely to be able to break through the very important resistance of 1.2484, which was not possible to do last Friday. Today, the task of the bulls is to break through and consolidate above this range, which will lead to the demolition of the bears' stop orders and further, more powerful growth of the pound with an exit to the highs of 1.2605 and 1.2686, where I recommend taking profits. If the pair declines, I recommend returning to long positions only after the test of the lower middle of the side channel 1.2363-83, provided that a false breakout is formed there, or buying GBP/USD immediately for a rebound from the large level of 1.2285, counting on a correction of 40-50 points within the day. Given that there is no important fundamental statistics in the first half of the day, against the background of low trading volume, speculators can take control of the market, which can lead to a sharp movement in one direction or another, with the same sharp return to a fair price.
To open short positions on GBP/USD, you need:
The technical picture did not change for sellers of the pound. They failed to regain the region of 1.2383 on Friday, but rather retreated from the market to test a bigger resistance, which is the upper limit of the sideways channel 1.2484. The formation of a false breakout in the first half of the day will be a signal for opening short positions with the aim of returning to the support 1.2383, which is the middle of the channel. Return and consolidation under the 1.2383 level will result in the pair falling to the area of support 1.2285, a break of which brings GBP/USD to last week's low of 1.2166 where I recommend to take profit. If the pound rises above the resistance of 1.2484, it is best to return to short positions only on the test of more recent highs of 1.2605 and 1.2686.
Signals of indicators:
Moving averages
Trade is carried out in the region of 30 and 50 moving average, which indicates the continued benefits of pound buyers.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differs from the general definition of the classic daily moving averages on the daily chart D1.
Bollinger bands
A break of the upper border of the indicator at 1.2484 will lead to a larger growth of the pound.
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 - Moving Average Convergence / Divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
