To open long positions on GBPUSD you need:
The British pound actively struggles for the level of 1.2339, which I paid attention to in my review yesterday afternoon. The catastrophic data on the decline in the UK services sector created pressure on the pair in the morning, but it was not possible to build a larger downward trend. The bulls made another attempt to grow during the US session, but met active resistance in the area of 1.2416, from which I advised you to open short positions. At the moment, we can expect growth and resistance test of 1.2416 while trading is above the 1.2339 level. In the absence of seller activity in this range, the bulls will quickly move the pound to a new high of 1.2476, where I recommend taking profits. In case the GBP/USD returns to the area under the support of 1.2339, it is best to look at long positions only when rebounding from the weekly low in the area of 1.2264, and then, counting on the upward correction of 30-40 points within the day.
To open short positions on GBPUSD you need:
Pound sellers did an excellent job yesterday and did not let the pair go above the resistance 1.2416, from where I advised you to sell. As a result, the bears continue to control the market despite the upward correction in the pair, which is observed on the third day. As soon as the bears once again push the pair under the support of 1.2339 and consolidate below it, short positions can be opened in order to break the lower border of the upward correction channel and continue to pull down GBP/USD to a low of 1.2264. More persistent sellers will expect the pair to fall to support 1.2173, where I recommend taking profits. Under the GBP/USD growth scenario in the first half of the day, you can also return to short positions after a test of a high of 1.2416, provided that there is a false breakout there, or even higher, from a large resistance of 1.2476, counting on a correction of 30-40 points inside the day.
Signals of indicators:
Moving averages
Trade is conducted in the region of 30 and 50 moving average, which indicates the preservation of equality among buyers and sellers.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differs from the general definition of the classic daily moving averages on the daily chart D1.
Bollinger bands
A break of the upper border of the indicator at 1.2365 will cause the pound to increase. Breakout of the lower border at 1.2325 will raise the pressure on the pound.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
