Source: Forex Analysis
To open long positions on GBP/USD, you need:
Buyers of the pound left the market after yesterday’s inflation data in the US. The primary task of the bulls is to hold the pair above the support of 1.2682, the formation of a false breakout will be a signal to buy the pound. In the scenario of further decline in GBP/USD, a more interesting area for opening long positions will be at least 1.2653. The aim of the bulls will be the test of the maximum of 1.2720, where I recommend taking the profit in the first half of the day.
To open short positions on GBP/USD, you need:
Sellers of the pound need to break below the support of 1.2682, which will keep the pressure on the pair and lead to an update of the larger area of 1.2653, where I recommend taking the profits in the first half of the day. The main weekly goal sellers will be the area of 1.2617. In the scenario of GBP/USD growth in the first half of the day, it is best to expect short positions to rebound from the resistance of 1.2720 or from the weekly high in the area of 1.276.
Trading is below 30 and 50 moving averages, indicating a further decline in the pound.
If the pound grows, the upper limit of the indicator in the area of 1.2720 will act as resistance, while the lower limit of the indicator in the area of 1.2655 may provide support.
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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