To open long positions on GBP/USD you need:
The bulls need to stay above the lower boundary of the side channel of 1.3162, and the formation of a false breakdown there will be a signal to buy in the morning. If the pound's downward movement resumes, it is best to return to long positions after updating the low near 1.3122 or to rebound from a support of 1.3083. A breakthrough and consolidation above 1.3212 will be an additional signal to increase long positions based on the test of highs of 1.3261 and 1.3316, where I recommend taking profits.
To open short positions on GBP/USD you need:
Alternatives for Brexit, voting on which will take place in the near future, keep the pound from falling. Today, sellers will try to form a false breakdown in the resistance area of 1.3212, but the main goal will be a breakthrough and consolidation below the support of 1.3162, which will lead to selling GBP/USD to the area of lows of 1.3122 and 1.3083, where I recommend taking profits. With growth scenarios above 1.3212 in the first half of the day, good resistance levels for selling will be seen in areas of 1.3261 and 1.3316, from where you can open short positions immediately to rebound.
Indicator signals:
Moving averages
Trade is conducted in the area of 30-day and 50-moving averages, which indicates the formation of a side channel.
Bollinger bands
A break of the lower border of the Bollinger Bands indicator around 1.3165 will be a signal to sell the pound. Growth will be limited by the upper boundary of the indicator near 1.3255.
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