To open long positions on the GBP / USD pair, you need:
Pound buyers ignored inflation data, which fully coincided with economists' forecast that led to a slight decrease in the pound in the first half of the day. However, the formation of a false breakdown in the area of 1.2649 may lead to a new upward trend. The main purpose of which will be a breakthrough and consolidation above 1.2696 resistance. Only after that, we can expect a renewal of the highs around 1.2740 and 1.2787, but much will depend on the statements of the Federal Reserve System. In the case of a decrease in the pound, the long positions are best to look at the rebound from the support of 1.2566, since the level of 1.2609 will be only a temporary stop.
To open short positions on the GBP / USD pair, you need:
Pound sellers tried to take advantage of weak inflation data but failed to form a larger fall. At the moment, everything is also required fixing below the support of 1.2649, which will carry a number of stop-order of buyers and lead to a drop in GBP / USD to the support area 1.2609 (first stop) and 1.2566, where I recommend taking profits. If the pair grows in the second half of the day, only false breakdown at 1.2696 will signal to sell the pound. In a different scenario, opening short positions is best to rebound from 1.2740.
Indicator signals:
Moving averages
Trade has moved to the area of 30- and 50-day moving, which indicates the formation of the lateral nature of the market.
Bollinger bands
Bollinger Bands indicator volatility falls, which does not give signals to enter the market.
Video forecast for December 19. What to look for in the Fed statements.
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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