To open long positions on GBP/USD, you need:
The optimal scenario for stopping the bearish trend will be the test of the support level 1.2812 with confirmation of the divergence on the MACD indicator, which is now being formed. Only this will allow us to expect a return above the range of 1.2877, from which we can expect a more significant demand for GBP/USD in the area of highs 1.2930 and 1.2983, where I recommend fixing the profits. In the scenario of further decline of the pair and the lack of rapid market movement up from the support of 1.2812, it is best to look at long positions on the rebound from the minimum of 1.2769 and 12723.
To open short positions on GBP/USD, you need:
The lack of news on Brexit and differences between the UK parties continue to push the pound down. The bearish trend continues, and the sellers' target today will be at least 1.2812, a breakthrough of which will lead to a larger decline in the pair to the support area of 1.2769 and 1.2723, where I recommend fixing the profits. However, before selling for a breakdown around 1.2812, you should pay attention to the bullish divergence of the MACD indicator, which may limit the downward potential. In the case of a pound growth in the first half of the day, short positions can be returned to the false breakdown in the resistance area of 1.2877 or consider short positions to rebound from a maximum of 1.2930.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger Bands
In case of further decline of the pound, the support will be provided by the lower limit of the indicator around 1.2812.
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
