Source: Forex Analysis
To open long positions on GBPUSD, you need:
The services sector has revived demand for the British pound, which went to renew highs before the important general election in the UK, which is scheduled for December 12 this year. The breakout of the large resistance of 1.3009, which I paid attention to in my morning forecast, led to the demolition of several stop orders of sellers and further supported GBP/USD. At the moment, after fixing above the next resistance of 1.3039, the bulls rushed to the maximum of 1.3074 and 1.3125, where I recommend taking the profits. With a downward correction in the second half of the day, which is unlikely to happen today, you can count on new purchases after a false breakout at a minimum of 1.3055.
To open short positions on GBPUSD, you need:
Sellers are in no hurry to return to the market after the demolition of several stop orders. Therefore, it is best to focus on the resistance of 1.3125, the formation of a false breakout on which will be a signal to sell the pound. Otherwise, it is best to sell GBP/USD on a rebound from the level of 1.3167. Only good data on the services sector in the United States, the release of which is scheduled for the second half of the day, will help the pound. The growth of the index will lead to small profit-taking on long positions in GBP/USD and a decline in the support area of 1.3056, where buyers will again actively act. The more important task of the bears will be to consolidate the pound under the support of 1.3056, which will push the pair to a minimum of 1.3009, where I recommend taking the profits.
Trading is above the 30 and 50 daily averages, indicating an upward trend.
In the case of a decline in the pound, the average border of the indicator around 1.3009 will provide support.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence – moving average convergence/divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
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