To open long positions on GBP/USD, you need:
As long as there is a confrontation between the British Prime Minister and EU leaders, the volatility of the pound will remain quite high. The bulls managed to maintain the support of 1.2084 yesterday, although everything spoke in favor of the continuation of the bearish trend. At the moment, the target of the pound buyers is the resistance of 1.2192, the breakthrough of which will lead to the continuation of the upward correction, and the data on the UK economy can support this trend, which will update the highs of 1.2240 and 1.2337, where I recommend taking the profits. If the opposition gains a negative character, the pressure on the pound will return. In this scenario, it is best to look for long positions on a false breakdown from support 1.2135 or buy from larger lows in the area of 1.2084 1.2044.
To open short positions on GBP/USD, you need:
Sellers need to form a false breakdown in the resistance area of 1.2192, which will increase the pressure on the pair and lead to the resumption of the bearish trend in the area of the lows of 1.2135 and 1.2084, where I recommend taking the profit. If buyers manage to cope with the maximum of 1.2192 in the first half of the day, then it is best to expect GBP/USD sales to rebound from the resistance of 1.2240, or sell the pound from a larger monthly maximum of 1.2337. The report of the Federal Reserve System from the July meeting of the Committee will also affect the GBP/USD pair in the afternoon.
Trading above 30 and 50 moving averages indicates the probability of returning the market to buyers of the pound.
The growth will be stopped near the upper limit of the indicator 1.2205, while the downward trend may rest against the lower limit in the area of 1.2100.
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