To open long positions on GBP / USD, you need:
British pound buyers continued to open long positions on the pound, despite the fact that the situation with Brexit has not been resolved, and just like Theresa May to get out of the current situation is not clear to anyone. At present, a good signal to buy will be a false break in the support area of 1.2708, or a breakthrough and consolidation above the resistance of 1.2753, which will keep demand for the pound and lead to a maximum test of 1.2798, where I recommend fixing the profits. In the case of a decline below the support level of 1.2708, you can open long positions immediately to the rebound from 1.2658, where the lower limit of the new ascending channel will be formed.
To open short positions on GBP / USD, you need:
Despite all the forecasts related to the sales of the pound, we see how the market is not following the scenario. Only an unsuccessful consolidation above the resistance of 1.2753 can provoke the closure of a number of long positions with a return to the intermediate support area of 1.2708 and an update of a larger area of 1.2658, where I recommend fixing the profits. In the case of growth above 1.2753, you can take a closer look at short positions after the test of the level of 1.2798 or at a rebound from the new monthly maximum of 1.2868.
Trade is conducted above the 30-day and 50-day moving averages, which indicates the continued demand for the British pound.
In the case of a decrease in the pound, support will be provided by the lower limit of the Bollinger Bands indicator in the area of 1.2658, from which you can open long positions. The upward trend may be limited by the upper limit of the indicator 1.2790, from where pound sellers will return to the market.
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