Source: Forex Analysis
To open long positions for GBP / USD, you need:
Weak inflation data in the United States once again helped the pound, which led to the breakthrough of the resistance level of 1.3086 and the further formation of an upward trend. However, the absence of specifics on Brexit limits the growth of the pound. Buyers today need a breakthrough above the resistance level of 1.3119, from which you can open long positions in the calculation for the test of highs 1.3165 and 1.3214, where I recommend fixing the profits. If the pound is lowered in the first half of the day, an area of 1.3086 will provide interim support, while buying GBP / USD for a rebound is best from a low of 1.3042. Today, comments from the Bank of England Governor Mark Carney can help the pound maintain an upward trend.
To open short positions for GBP / USD, you need:
Bears need to form a false breakout of the resistance level of 1.3119 and return under it. The whole emphasis will be shifted to the speech of the head of the Bank of England. The main task of the sellers is to return to the support level of 1.3086, which will lead to a quick sale of the pound and a test of the low at 1.3042, where I recommend fixing the profits. In the case of growth above 1.3119 in the morning, short positions in GBP / USD are best sought after the update of new highs of 1.3165 and 1.3214.
The 30-day moving average is above the 50-day moving average, which indicates the development of an uptrend – a signal to buy from large support levels with a decline.
Description of indicators
MA (average sliding) 50 days – yellow
MA (average sliding) 30 days – green
MACD: fast EMA 12, slow EMA 26, SMA 9
Bollinger Bands 20
The material has been provided by InstaForex Company – www.instaforex.com