To open long positions on GBP/USD, you need:
Buyers missed the support level of 1.2648, but a major sell-off has not yet occurred, which leaves a chance for an upward correction. However, this requires a return to 1.2648, which will return the demand for GBP/USD and lead to an update of the resistance of 1.2969. This will allow us to count on the rapid growth of the pair to the highs of 1.2744 and 1.2800, where I recommend fixing the profits. With a further decrease in the pound, it is possible to open long positions on a false breakdown from a minimum of 1.2607 or on a rebound from larger monthly support of 1.2564.
To open short positions on GBP/USD, you need:
The bears achieved their goal and broke below the support of 1.2648. As long as the trade is conducted below this level, the pressure on the pound will continue. However, the main task of the bears is the support of 1.2607, a breakthrough of which will plunge the pair into a new downward peak with the building of a trend and updating of the lows around 1.2564 and 1.2500, where I recommend fixing the profit. With the growth scenario above 1.2648 in the second half of the day, you can return to sales of the pound immediately to rebound from the maximum of 1.2696.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a return to the market of the sellers of the pound.
Bollinger Bands
However, the main problem of a downward trend is low volatility, which does not give signals to enter the market.
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
