Source: Forex Analysis
To open long positions on GBP/USD, you need:
Inflation data fully coincided with the forecasts of economists, which led to a slight decline in the pound in the morning. Consider long positions in GBP/USD is best after the return and consolidation above the resistance of 1.3064, which will update the upper limit of the wide side channel in the area of 1.3094 and the maximum test of 1.3118, where I recommend fixing the profit. In a scenario repeated waves of weakness, count on long positions after a false breakthrough in the field of 1.3032 or on the rebound from the low of 1.3010.
To open short positions on GBP/USD, you need:
The bears urgently need the formation of a false breakout in the resistance area of 1.3064, which will increase the pressure on the pair and lead to another test of large support of 1.3032, from which the pound rebounded four times. Only a break in this range will increase the pressure on GBP/USD, which will open a direct road to the area of the minimum 1.3010 and 1.2989, where I recommend making a profit. In a scenario of rising above 1.3064 in the second half of the day, count on a short position is better on the rebound from the resistance 1.3094.
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
In the scenario of reducing the pair, the lower limit of the Bollinger Bands indicator in the area of 1.3032 will act as a support, a breakthrough of which will lead to a sharp decrease in the pound. Breaking the middle border in the 1.3064 area may increase the demand for GBP / USD.
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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