To open long positions on the GBP / USD pair, you need:
Buyers of the British pound are not yet available in the market, however, a strong bearish correction is also not observed. The main task for the first half of the day will be the return and consolidation above the resistance of 1.3042, which will lead to an upward corrective impulse to the area of 1.3099. However, to break the current downward trend requires the breakdown of this range with a yield of 1.3159, where I recommend to take profits. In the event of a further decline of the pound on weak data in the UK, it is best to look for long positions on a rebound from a minimum of 1.2971.
To open short positions on the GBP / USD pair, you need:
A failure to consolidate above the resistance of 1.3042 will be the first signal to sell to the British pound, however, the main target for sellers will be a large level of support in the 1.2971 area, where I recommend taking profits. In the case of a pound rising above 1.3042, it's best to take a closer look at short positions after updating the maximum in the area of 1.3099 or at a rebound from the level of 1.3159. Any news of the failure of negotiations between Theresa May and EU representatives could lead to a rapid fall in the pound.
Found in the video review.
Indicator signals:
Moving averages
Trade is conducted below the 30- and 50-day moving, which indicates the further formation of the downward movement.
Bollinger bands
Volatility is low, which does not give signals for entering the market using the Bollinger Bands indicator.
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
The material has been provided by InstaForex Company - www.instaforex.com