To open long positions on GBP/USD you need:
The lack of news on Brexit pulls down the British pound, but it's too early to talk about the turning point of an upward trend from April this year. Buyers are now required to return to the resistance of 1.3987, which will break the formed upper limit of the downward channel and give GBP/USD an impetus for a new breakthrough up to the highs of 1.3130 and 1.3167, where I recommend taking profit. Under the decline scenario, the intermediate support will be the area of 1.3050, however, I recommend that you buy the pound immediately for a rebound only after the test of a low of 1.3016, confirming the divergence on the MACD indicator.
To open short positions on GBP/USD you need:
Today, bears will be focused on the formation of a false breakdown in the resistance area of 1.3087, from which the lower boundary of the new downward channel is already built. The main task of sellers will be a breakthrough and a return below the support level of 1.3050, which will push the GBP/USD pair to the area of lows of 1.3016 and 1.2983, where I recommend taking profits. However, when the support of 1.3050 breaks with selling, you need to be extremely cautious, as the emerging divergence on the MACD indicator can slow down the downward impulse. When the growth scenario is above 1.3087, you can sell after updating a high of 1.3130, but it is best to wait for the test of level 1.3167 and open short positions from there immediately on the rebound.
Indicator signals:
Moving averages
Trade is conducted in the region of 30 and 50 moving averages, which indicates uncertainty about the British pound's future direction.
Bollinger bands
In case of a decline, support will be provided by the lower limit of the indicator near 1.3050. The breakthrough of the upper boundary around 1.3087 will be a signal for buying based on the resumption of an upward trend.
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
