To open long positions on GBP/USD you need:
The unsuccessful attempt by pound buyers to return to the market yesterday turned into a new wave of sales, which are likely to continue further. The euphoria of the soft tone of Boris Johnson’s statement ends, and buyers gradually leave the market. At the moment, support is the week’s low at around 1.2419, and only the formation of a false breakdown on it will be the first signal for opening long positions. More optimal levels are seen below in the area of 1.2383 and 1.2342. The main task of the bulls today will be a breakthrough and consolidation above the resistance of 1.2456, which again “pulls the blanket” to the side of pound buyers and returns the pair to a high of 1.2496, where I recommend taking profits.
To open short positions on GBP/USD you need:
Pound sellers still control the market. An unsuccessful attempt to return to a resistance of 1.2456, which bulls can make today in the first half of the day, will be a good signal to open new short positions in GBP/USD, the goal of which will be this week’s low at 1.2419. Only its breakdown will indicate a real resumption of the downward trend in the pair, which will lead to an update of levels 1.2383 and 1.2342, where I recommend to take profits. If the bulls prove to be tougher and return to the resistance of 1.2456, then in this scenario it is best to look for short positions to rebound from resistances of 1.2496 and 1.2534.
Trading is below 30 and 50 moving averages, which indicates the prevalence of pound sellers in the market.
The pair may be supported by the lower limit around 1.2419, while the upward correction will be limited to the upper limit of the indicator around 1.2496, from which you can sell a pound immediately to rebound.
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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