To open long positions on GBPUSD, you need:
From a technical point of view, the situation in the British pound did not change in any way compared to the morning forecast, except for several unsuccessful attempts to break above the resistance of 1.1563, which each time led to a sale and a return of GBP/USD to the support area of 1.1471. The task for the second half of the day for the bulls will be to protect this level, and the formation of a false breakdown will allow you to make another attempt to break the resistance of 1.1563, which is clearly visible on the 5-minute chart. Fixing above this level will allow the bulls to reach the resistance of 1.1653, where the moving averages that limit the upward potential are gradually pulled up. In the scenario of a further decline in the GBP/USD trend, it is best to return to long positions from round figures in the area of 1.1400 and 1.1300.
To open short positions on GBPUSD, you need:
Bears will focus on protecting the resistance of 1.1563, where the next false breakdown formation, as it was in the first half of the day, will be a signal to open short positions in the expectation of a breakdown and consolidate below the support of 1.1471, which will only strengthen the strength of sellers. Below the level of 1.1471, a direct road opens to the lows of 1.1400 and 1.1300, where I recommend fixing the profits. If the bulls are stronger in the second half of the day, which is unlikely, given the situation in the UK economy, it is best to return to short positions after forming a false breakdown at the resistance of 1.1653, or open short positions immediately to rebound from the maximum of 1.1746.
Signals:
Moving averages
Trading is below the 30 and 50 daily averages, which indicates that the bearish trend is continuing.
Bollinger Bands
In the case of an upward correction, the upper limit of the indicator in the area of 1.1653 will act as a resistance.
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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