To open long positions on GBP/USD you need:
Pound buyers need to keep the level of 1.2674, and the formation of a false breakdown, after updating the yesterday's low, will be the first signal to open long positions in the pound. However, the main movement will depend on the speech of the Bank of England Governor Mark Carney, which is scheduled for today. Buyers of GBP/USD will be aiming for a return to a resistance of 1.2712, which will lead to the renewal of weekly highs in the 1.2756 and 1.2799 areas, where I recommend taking profits. In case the pound further declines, it is best to return to long positions to rebound from a low of 1.2633.
To open short positions on GBP/USD you need:
Bears will try to break below the support of 1.2674, which will increase the pressure on the pound and lead to a renewal of lows around 1.2633 and 1.2596, where I recommend taking profits. If Mark Carney suddenly talks about lowering the interest rate, the pressure on GBP/USD may increase much more. If in the first half of the day the bulls form an upward correction, you can count on selling from a resistance of 1.2712, provided a false breakdown is formed, or a rebound from a high of 1.2756.
Indicator signals:
Moving averages
Trading is below 30 and 50 moving averages, which indicates a downward correction in the pair.
Bollinger bands
The upward correction will be limited to the middle of the channel in the area of 1.2712 and the upper boundary of the indicator in the area of 1.2756.
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
