To open long positions on GBP/USD you need:
The pressure on the pound will remain, but buyers have a good support level of 1.2570, whose test, with confirmation of divergence on the MACD indicator, which is currently being formed, will be the first signal to open long positions estimated on the return and consolidation above the resistance of 1.1609. Under the scenario of a larger decline according to the trend under the support of 1.2570, it is best to expect buyers to return to the market from a low of 1.2544.
To open short positions on GBP/USD you need:
The formation of a false breakdown in the resistance area of 1.2609 in the first half of the day will be a good signal to open short positions in the hope of updating support at 1.2570. Movement below this level will be limited by the divergence on the MACD indicator, so it’s best to add to short positions after consolidating below this range, counting on the test of lows of 1.2544 and 1.2500, where I recommend to take profits. If the growth scenario is above the resistance of 1.2609, short positions can be returned to rebound from 1.2649.
Trading is below 30 and 50 moving averages, which indicates a further decrease in the pound.
In case the pound falls, support will be provided by the lower limit of the indicator in the area of 1.2570, while growth will be limited by the upper limit in the area of 1.2630.
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