To open long positions on GBP/USD you need:
The main task of the buyers of the pound for the first half is to consolidate above the resistance of 1.2660, which will lead to a sharper upward impulse of GBP/USD to the area of a high of 1.2703 and to the test of large resistance at 1.2741, where I recommend to lock in the profit. In case the pound further declines, it is best to buy if a false breakout is formed in the support area of 1.2623, with confirmation of the divergence on the MACD indicator, or a rebound from a new low in the area of 1.2582.
To open short positions on GBP/USD is required:
Bears will count on a re-test of support at 1.2623, the breakthrough of which will keep the downward momentum in the pair and will lead to another low in the area of 1.2582, where I recommend taking profits in the morning. In case the GBP/USD grows, it is best to return to short positions after the test of resistance at 1.2663, provided there is a false breakdown there, or to rebound from a high of 1.2703.
Trading is below 30 and 50 moving averages, which indicates a downward correction in the pair.
The upward correction will be limited to the upper boundary of the channel in the region of 1.2695, while a breakthrough in the lower boundary in the region of 1.2623 will strengthen the bearish momentum.
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