To open long positions on GBP/USD, you need:
The pound continued to grow in the first half of the day, even after the Bank of England’s statements on the high probability of a hard Brexit. The bulls managed to break above the support of 1.2537, and as long as trading continues above this range, the demand for the pound will remain, which will lead to an update of the highs in the area of 1.2585 and 1.2639, where I recommend taking the profit. In the scenario of GBP/USD decline in the second half of the day, you can buy when forming a false breakout at the level of 1.2537 or a rebound from a larger minimum of 1.2503.
To open short positions on GBP/USD, you need:
The sellers’ goal for the second half of the day will be a false breakout in the resistance area of 1.2585, which can be formed after the US inflation data. Only after that can we expect the pound to fall to the support area of 1.2537, and the consolidation below this level will quickly push the pair to a minimum of 1.2503, where I recommend taking the profits. In the scenario of further growth of GBP/USD, you can look at the short positions on the rebound from the maximum of 1.2639.
Trading is above 30 and 50 moving averages, indicating a possible continuation of the pound growth.
In the case of the GBP/USD decline in the second half of the day, the support will be provided by the average border of the indicator around 1.2520.
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