To open long positions on GBP/USD you need:
Buyers of the pound, sort of stuck above the level of 1.2566, having managed to win back the morning gap down, and while trade is conducted above this range, you can count on the continuation of the upward trend in the area of a large resistance level of 1.2596, where I recommend taking profits. The main target of bulls will be a high of 1.2639. In case of a downward correction scenario in the first half of the day, long positions can be returned on a false breakdown from a support of 1.2546, or from a larger low in the area of 1.2509.
To open short positions on GBP/USD you need:
It is best to consider short positions in the pound after an update of a major resistance in the area of 1.2596, or after a test of a high of 1.2639, from which medium-term players will return to the market. However, the main task of sellers today will be to return and consolidate below the support of 1.2546, which will provide the bears with the necessary pressure on the pound, which is able to push GBP/USD to the lows of 1.2509 and 1.2469, where I recommend taking profits.
Indicator signals:
Moving averages
Trade is conducted above 30 and 50 moving averages, but the upward momentum loses its strength.
Bollinger bands
If the pound goes down, support will be provided by the lower limit of the indicator in the 1.2535 area. A break of the upper border around 1.2590 could lead to a new wave of growth for the pound.
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
