To open long positions on GBP/USD you need:
The pound buyers' task is to break through and consolidate above the upper boundary of the side channel of 1.3118, which will resume an uptrend and update new highs in the areas of 1.3160 and 1.3195, where I recommend taking profits. In case the pound falls in the first half of the day, it is best to return to long positions to rebound from the lower boundary of the channel in the area of 1.3052 and 1.3021.
To open short positions on GBP/USD you need:
The data, which will be released today regarding unemployment in the UK, could help the pound in getting out of the side channel. The formation of a false breakdown around 1.3118 will be the first signal to sell, and if the pound rises above 1.3118, you can sell for a rebound from the new weekly high in the area of 1.3160. The main goal of the bears will be to fall to the lower border of the channel in the area of 1.3052 and consolidate below it, which will lead to an update of the low in the area of 1.3021, where I recommend taking profits.
Trade is conducted in the region of 30 and 50 moving averages, which indicates the formation of a side channel.
A break of the upper border of the Bollinger Bands indicator near 1.3115 may increase the demand for the pound, while a surge of the lower border of the indicator near 1.3081 will cause the pair to sharply decline.
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