To open long positions on GBP/USD, you need:
Yesterday’s rebound from the support of 1.2383 led to a large upward wave. Now, the buyers of the pound formed the support of 1.2417, and while trading will be conducted above this range, the demand for GBP/USD will remain, but the main goal is to break the resistance of 1.2452. Only a consolidation at this level will increase demand, which will lead to an update of the maximum of 1.2498, where I recommend fixing the profits. A more optimal scenario for opening long positions in the pair will be a false breakout in the morning in the support area of 1.2417. You can buy GBP/USD only on a rebound from the lower border of the side channel of 1.2383.
To open short positions on GBP/USD, you need:
In the first half of the day, you can look at the short positions on the false breakout in the area of 1.2452, but larger sellers will probably wait for the test of the maximum of 1.2498, where they will try to form a new border of the downward channel. The main task of the bears will be to break through and consolidate below the support of 1.2417, which will push the pound back to the minimum of the month in the area of 1.2383, where I recommend taking the profits.
Trading is conducted above 30 and 50 moving averages, which indicates the preservation of the upward correction in the pair.
The breakthrough of the lower limit of the indicator in the area of 1.2417 may increase the pressure on the pound.
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
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