To open long positions on GBP / USD you need:
In order to stop a downward trend, buyers of the pound require a return and consolidation above the level of 1.2930, which they lost yesterday in the afternoon after a slight upward correction, which was formed due to the divergence on the MACD indicator. Only above the 1.2930 range would we be able to expect a more substantial demand for the pound, which will lead to an update of highs of 1.2983 and 1.3037, where I recommend taking profits. In case the GBP/USD drops further, it is best to look at long positions for a rebound from a low of 1.2877-70.
To open short positions on GBP/USD you need:
The lack of news on Brexit and disagreements between the UK parties are increasing the pressure on the pound. The goal of sellers today is to form a false breakdown in the resistance area of 1.2930, which will be the first signal to open short positions that could easily lead GBP/USD to the area of lows of 1.2870 and 1.2812, where I recommend taking profits. In case the pound rises above the resistance of 1.2930, short positions can be considered to rebound from a high of 1.2983.
Indicator signals:
Moving averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger bands
In case the pound decreases further, support will be provided by the lower limit of the indicator in the area of 1.2889. The resistance is the upper limit in the 1.2935 area.
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
