To open long positions on the GBP / USD pair, you need:
The formation of the divergence, which I drew attention to in my morning review, led to a return in demand for the British pound and consolidating above 1.2950 support, which may strengthen the upward correction in the afternoon. The main objective of the bulls is to break through the resistance level of 1.2992, just above which the upper limit of the current downward channel passes. In the case of a repeated decline of the pound to the support area of 1.2931, from there it is best to return to long positions only on a false breakdown or on a rebound from a new minimum of 1.2883.
To open short positions on the GBP / USD pair, you need:
The bears could not continue the downward trend in the pound in the first half of the day, which led to the closure of a number of short positions and a slight upward rebound of the GBP/USD pair. At the moment, short positions can return to a false breakdown in the area of large resistance at 1.2992, where the 50-day moving average is located, or to rebound from a maximum of 1.3048. The main task of the sellers will be a repeated test of the support area 1.2931 and a breakout will open a direct road to the area of new weekly lows of 1.2883 and 1.2833, where I recommend taking profits.
More in the video forecast for February 6
Indicator signals:
Moving averages
Trade is conducted below the 30- and 50-day moving, which indicates a possible drop in the pound in the short term.
Bollinger bands
Bollinger Bands indicator volatility has plummeted, which does not give signals on the market entry.
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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