To open long positions on GBP/USD, you need:
In the first half of the day, I recommended selling immediately on the rebound from the resistance of 1.2284, from where, as we can see on the chart, large players returned to the market. At the moment, the task of the bulls remains the same, however, while there is no clarity with Brexit, pressure on the pound will continue. For purchases today, I recommend to focus on the support of 1.2177, and the formation of a false breakdown there will be the first signal to open long positions. However, a more important goal for the bulls remains to return and consolidate at the resistance of 1.2241, which was not possible during the European session. Only above this range can we talk about a repeated upward correction to the resistance of 1.2284, where I recommend taking the profit. If the situation with Brexit continues to escalate, and most likely it will, it is best to consider new long positions after updating the lows in the areas of 1.2150 and 1.2112.
To open short positions on GBP/USD, you need:
We worked out the resistance level of 1.2284 and returned from there to the market, which I paid attention to in the morning. While trading is below this range, the pressure on the pound will remain, and the next formation of a false breakdown in this range will increase the pressure on the GBP/USD, which will lead to a decrease in the support area of 1.2177. A breakthrough of this minimum will increase the pressure on the pair and roll the pound to the lows of 1.2150 and 1.2112, where I recommend taking the profits. In the scenario of the pound rising above the resistance of 1.2241 in the second half of the day, which can be implemented after the publication of the protocols of the September meeting of the Fed, you can count on short positions to immediately rebound from the maximum of 1.2284.
Indicator signals:
Moving Averages
Trading is below 30 and 50 daily averages, indicating a further bearish market.
Bollinger Bands
A break of the lower border of the indicator in the region of 1.2200 will increase the pressure on the pound.
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
The material has been provided by InstaForex Company – www.instaforex.com
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