To open long positions on GBP/USD, you need:
The expected demand for the pound in the support area of 1.3098 is missing, so in the second half of the day, it is best to consider long positions after updating the minimum of 1.3078, provided that the volume rises at this level or after a test of larger support at 1.3039. Bulls also have a new task. By the end of the day, they need to return to the support level of 1.3130, which will keep the upward trend and lead to a maximum test of 1.3176, where I recommend fixing the profits.
To open short positions on GBP/USD, you need:
Bears will pull the pair down to the support level of 1.3078, and if buyers do not resist there, then it is best to open long positions on the rebound from the low of 1.3039. In the case of an upward correction in the second half of the day, it is best to return to short positions on a false breakdown from the level of 1.3130 or on a rebound from 1.3176. However, we should not forget that tomorrow, Teresa May can present her next plan for leaving the EU, which will provide substantial support to the pound in the event of its approval.
Indicator signals:
Moving Averages
The downward correction in the pound led to the test of 30 and 50 moving averages, which can return new buyers to the market.
Bollinger Bands
In the case of a pound company in the second half of the day, the average border around 1.3130 and the upper border of the indicator around 1.3176 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
