To open long positions on GBP/USD, you need:
The bulls failed to stay above the important support levels that I paid attention to in my morning forecast. The lack of agreements on Brexit between the two main parties of the UK continues to put pressure on the pair. The main task of buyers for the second half of the day is to return to the resistance of 1.3041. Only then can we expect an upward correction in the area of the maximum of 1.3087, where I recommend fixing the profit. Also, the bulls will need a lot of strength to stay in the afternoon above the support of 1.2987, the test of which may take place in the near future. In the scenario of its breakdown, it is best to open long positions on the rebound from the minimum of 1.2946.
To open short positions on GBP/USD, you need:
The bears coped with the morning task and continued the downward correction in the pair, despite the emerging divergence on the MACD indicator. The main goal of sellers for the second half of the day will be to update the minimum of 1.2987, which will push GBP/USD down to the support area of 1.2946 and 1.2905, where I recommend fixing the profits. Also, a good signal to sell will be an unsuccessful attempt to consolidate above the resistance of 1.3041, which will lead to a return to the market of new sellers of the pound.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a bearish advantage.
Bollinger Bands
In the case of the pound's company in the afternoon, the average border around 1.3060 will act as resistance.
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
