To open long positions on GBPUSD, you need:
In my morning forecast, I paid attention to the need for a breakthrough and consolidation above the range of 1.2605, since only in this scenario could we expect to continue the upward correction of the pound. Unfortunately, buyers failed to do so and the pressure on GBP/USD returned. Now the task of the bulls will be to protect a large support level of 1.2522, and only the formation of a false breakdown there will be a signal to open long positions. However, it is best to postpone purchases until the test of new intra-month lows in the area of 1.2417 and 1.2385. An equally important task for buyers is to break the resistance of 1.2605, which will lead to the pair’s recovery and test the highs of 1.2686 and 1.2744. However, given the fact that we are waiting for the publication of a summary of monetary policy, we can hardly expect a rush of large buyers into the market.
To open short positions on GBPUSD, you need:
Sellers coped with the morning task perfectly and formed a good signal to open short positions in the resistance area of 1.2605, which I paid attention to in my morning forecast. At the moment, the bears’ task is to break through and consolidate below the support of 1.2522, which will increase pressure on the pair and lead to a new downward wave of GBP/USD to the area of the lows of 1.2417 and 1.2353, where I recommend fixing the profits. The publication of a summary of monetary policy by the Bank of England, which is scheduled for the second half of the day, will help the bears in this regard. If the pair returns to the resistance area of 1.2605 in the second half of the day, it is best to postpone short positions until the update of the larger levels of 1.2686 and 1.2744.
Signals of indicators:
Moving averages
Trading is below the 30 and 50 daily averages, which indicates that the bearish trend is continuing.
Bollinger Bands
A break in the lower border of the indicator around 1.2520 will increase the pressure on the pound. Growth will be limited to the upper level in the area of 1.2605.
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
The material has been provided by InstaForex Company – www.instaforex.com
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