Source: Forex Analysis
To open long positions on GBP/USD pair, you need:
Buyers managed to stay above the support level of 1.3184, which I mentioned in the morning review, and the comments of the Governor of the Bank of England allowed traders to increase their long positions. The main task for the second half of the day is to break through and consolidate above resistance 1.3220, which will lead to the formation of a new upward movement in the pound with a maximum of 1.3269, where taking profits are recommended. In the case of a decline in GBP / USD in the afternoon, long positions can return immediately to the rebound from the support of 1.3147.
To open short positions on GBP / USD pair, you need:
Sellers will try to keep the pair below the resistance of 1.3220 and the formation of a false breakdown on it will lead to a larger downward trend with repeated support test of 1.3184. A break of 1.3184 will allow us to expect an increase in short positions in the GBP / USD pair by updating the lows in the area of 1.3147 and 1.3098, where taking profits are recommended. In the case of the pound rising above the resistance of 1.3220 in the second half of the day, it is best to return in short positions on a rebound from a high of 1.3269.
The price is above the 30-day and 50-day moving average, which indicates continuous growth of the pound.
The upside potential is limited by the upper line of the Bollinger Bands indicator around 1.3236. The breakthrough of which will lead to a new wave of pound growth.
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
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