To open long positions on GBP/USD you need:
I recall that during the vote, it was decided that the UK could remain in the EU until October 31, 2019, which will increase the pressure on the pound in the medium term. The overall picture for today has not changed compared with Friday. Buyers today need to form a false breakdown in the middle of the channel of 1.3086, which will be the first signal to buy based on a breakthrough and consolidation above the upper limit of 1.3130, which will lead to an update of the highs in the area of 1.3160 and 1.3195, where I recommend taking profits. In case the pound decreases below the level of 1.3086 in the first half of the day, it is better to consider new long positions to rebound from the lower border of the channel of 1.3048 or from the new low of 1.3021.
To open short positions on GBP/USD you need:
Today, bears will count on the formation of a false breakdown in the region of the upper boundary of the side channel of 1.3130, which will be the first signal to sell the pound. However, the main goal will be to return and consolidate below the middle of the channel of 1.3086, which will push GBP/USD to larger lows in the area of 1.3048 and 1.3021, where I recommend taking profits. When the growth scenario is above 1.3130 in the first half of the day, it is best to rely on selling GBP/USD from a high of 1.3160.
Indicator signals:
Moving averages
Trade is conducted in the region of 30 and 50 moving averages, which indicates the formation of a side channel.
Bollinger bands
A break of the upper border of the Bollinger Bands indicator near 1.3115 may increase the demand for the pound, while the downward correction will be limited to the lower border of the indicator near 1.3065.
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