To open long positions on the GBP / USD pair, you need:
Buyers gave up a large support level of 1.2788, which I paid attention to in my morning forecast, but I did not manage to break through below monthly minimums. While trading will be conducted above the support of 1.2727, we can expect a return and consolidation above resistance of 1.2786 which will trigger new purchases in GBP / USD with an exit to the maximum of 1.2856, where I recommend taking profits on long positions. In the event of a further decrease in the pound, you can count on purchases to rebound from new lows in the 1.2663 and 1.2625 areas.
To open short positions on the GBP / USD pair, you need:
Repeated test of support 1.2727 will lead to the formation of a new wave of sales of the British pound with access to the minima in the area of 1.2663 and 1.2625, where I recommend to fix the profit. In the case of an upward correction in the second half of the day, short positions can return after the formation of a false breakdown in the area of large resistance 1.2786 or to a rebound from the upper limit of the channel 1.2856.
Indicator signals:
Moving averages
Trading is below 30-day and 50-day moving averages, which indicates a further downward trend of the pound.
Bollinger bands
A repeated test of the lower limit of the Bollinger Bands indicator around 1.2727 will lead to a new wave of falling pounds.
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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