To open long positions on the GBP / USD pair, you need:
Good fundamental data on Friday led to the formation of an upward correction in the pound, which can continue today. This requires a breakthrough and consolidation above the resistance of 1.2924, which will give a new impetus to growth in the area of highs at 1.2986 and 1.3047, where I recommend taking profits. In the case of a downward correction, which can be observed in the first half today, long positions in the GBP/USD pair can return to the false breakdown from the support of 1.2868, where the moving averages are concentrated. Another option is to look for a rebound from the minimum of 1.2812, where the lower limit of the ascending channel passes.
To open short positions on the GBP / USD pair, you need:
The formation of a false breakdown in the resistance area of 1.2924 will be the first signal to open short positions in the pound in order to reduce and test support 1.2868, where I recommend to take profits. However, the main goal of sellers will at least be at 1.2812, but even testing this area will not lead to the resumption of the downward trend. This requires an update in the level of 1.2769. In case of further growth of the GBP/USD pair, you can consider short positions on the rebound from the maximum of 1.2986.
Found in the video review.
Indicator signals:
Moving averages
Trade is conducted above the 30- and 50-day moving, which indicates the formation of an upward correction.
Bollinger bands
Today, the Pound growth may limit the upper limit of the Bollinger Bands indicator in the area of 1.2950. In case of correction, you can purchase the pair on a rebound from the lower border in the area of 1.2815.
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
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