To open long positions on GBP/USD, you need:
Buyers of the pound managed to gain a foothold above the resistance of 1.3070, but good news on Brexit is needed to continue the upward trend. Only this will update the highs at 1.3112 and 1.3160, where I recommend fixing the profit. In case of GBP/USD decline in the first half of the day below the level of 1.3070, you can open long positions on the rebound from the low of 1.3034, and best of all from the area of 1.2988, which coincides with the monthly lows.
To open short positions on GBP/USD, you need:
Bears will seek to return to the support level of 1.3070, which will lead to a larger sale of the pound in the area of the lows of 1.3034 and 1.2988, where I recommend fixing the profit. In the pound growth scenario, only the formation of a false breakout in the resistance area of 1.3112 will be a signal to open short positions. In a different scenario, selling GBP/USD is best on a rebound from the high of 1.3160.
Trading is just above 30 and 50 moving averages, but it is too early to talk about the formation of a new uptrend.
In the scenario of the next wave of the pound decline, the support will be provided by the lower limit of the indicator around 1.3034.
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