To open long positions on GBP / USD, you need:
The pound continued to decline against the background of weak data on PMI indices, which continue a series of weak statistics on the UK economy. Buyers today can only rely on the formation of a false breakdown in the support area of 1.2995, and otherwise, it is best to open long positions to rebound from a new low of 1.2947. The main task will be to return and consolidate above the resistance level of 1.3048, which will not be so easy without more compelling reasons, including the positive news on Brexit from British Prime Minister Theresa May.
To open short positions on GBP / USD, you need:
The bears worked the scenario for sale from the level of 1.3048, to which I paid attention in my morning review. At the moment, the challenge is to re-test support of 1.2995, which may lead to a larger sale of GBP / USD to the area of minimum 1.2947 and 1.2894, where I recommend taking profits. In the case of an upward correction scenario in the second half of the day, short positions can be opened on the condition of a false breakdown in the area of the morning resistance at 1.3048 or for a rebound from 1.3099.
Indicator signals:
Moving Averages
Trade is conducted below the 30-day and 50-day moving, which indicates a possible drop in the pound in the short term.
Bollinger bands
In the case of GBP / USD growth, the upside potential may be limited by the upper limit of the Bollinger Bands indicator around 1.3053.
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
