To open long positions on GBP/USD you need:
Buyers of the pound managed to form a false breakout from the support level of 1.3085, which I paid attention to in my morning review. Now their task is to break and consolidate above the upper limit of the side channel 1.3130, which will allow to resume the uptrend and update new highs in the area of 1.3160 and 1.3195, where I recommend fixing the profit. In the scenario of a repeated decline of the pound in the afternoon, long positions are best to return to the rebound from the lower border of the channel in the area of 1.3052.
To open short positions on GBP/USD you need:
We see that the average border of the wide side channel, which I paid attention to in my morning review, is quite blurred, so it is best to open short positions on the pound after the test of the upper limit of 1.3130 or a rebound from the new weekly maximum in the area of 1.3160. The main goal of the sellers will be to reduce to the lower border of the channel to the area of 1.3052 and update the minimum in the area of 1.3021, where I recommend fixing the profit.
Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the market.
In the scenario of the pound decline, the lower border of the Bollinger Bands indicator in the area of 1.3065 will act as support. The break of the upper border at 1.3115 may strengthen the demand for GBP/USD.
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