To open long positions on GBP/USD you need:
The bears were unable to offer anything serious yesterday from the resistance of 1.1798, which I drew attention to in my forecast, and after several unsuccessful attempts to reduce, the pair returned today to this range, which buyers will now concentrate on. A breakthrough of resistance 1.1798 may lead to the resumption of growth of GBP/USD in the highs 1.1926 and 1.2023, where I recommend taking profits. However, it is not worth counting on a protracted upward scenario. UK inflation data may be worse than economists forecast. Therefore, it is best to open long positions in the scenario of the pound returning to the middle of the side channel of 1.1635, with a false breakout forming there, or buying immediately for a rebound from the year's low at 1.1470.
To open short positions on GBP/USD you need:
Bears need to concentrate on defending the resistance 1.1798, and the next formation of a false breakout from this range, by analogy with March 20, will raise the pressure on the pair and lead to a decrease in the support area of 1.1635. However, it will be more bold to talk about the resumption of the bearish trend only after breaking this range, which will lead to the demolition of a number of stop orders of buyers and a more rapid decrease in GBP/USD to the low of 1.1470, where I recommend taking profits. In case the pair grows above resistance 1.1798, which will coincide with a breakout of the upper boundary of the current downward channel, it is best to return to short positions on the test of a high of 1.1926, or sell immediately for a rebound from a larger resistance of 1.2023, counting on a correction of 60-70 points inside of the day.
Signals of indicators:
Moving averages
Trade is conducted above 30 and 50 moving averages, which keeps the chance to continue the pound's recovery in the short term.
Bollinger bands
Volatility is gradually decreasing, returning the market to its previous course. A break in either direction of the indicator boundaries can set the direction of the pound in the first half of the day.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
