To open long positions on GBP / USD, you need:
Weak PMI data for the UK construction sector limited the upward correction in the pound, which could be observed at the opening of the European session. At the moment, only a breakthrough of the resistance level of 1.2582 will be a signal to buy the pound in order to update today's high near 1.2622, where I recommend fixing the profits. In the case of a decrease under the support area of 1.2536, long positions in GBP / USD is best to look at the rebound from the support of 1.2482.
To open short positions on GBP / USD, you need:
An unfortunate consolidation above the resistance of 1.2582 and breakthrough support of 1.2536 will be a direct signal to open short positions in the pound, the goal of which will be the lows around 1.2482 and 1.2439, where I recommend fixing the profits. In the case of weak statistics on the American economy, the output of which is scheduled for the second half of the day, we can consider selling the pound to rebound from the resistance of 1.2622.
Indicator signals:
Moving Averages
Trade is conducted below the 30-day and 50-day moving, which more indicates a persisting bearish trend.
Bollinger bands
In the case of a decrease in the pound by the trend, support will be provided by the lower limit of the Bollinger Bands indicator around 1.2500.
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
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