To open long positions on GBP / USD, you need:
Weak inflation data in the UK led to a decrease in the pound in the first half of the day. However, while trading is conducted in the support area of 1.2876, there is a likelihood of a return to the buyers market, which will lead to a test and a breakthrough of the maximum of 1.2912. Only after that, we can safely count on the continuation of the upward correction in the area of 1.2972 and 1.3047, where I recommend fixing the profits. In the event of a further decline in the pound, support will be at least this week's 1.2837.
To open short positions on GBP / USD, you need:
Only a good report on inflation in the United States will be able to help the bears break through the support level of 1.2876, consolidating under which will resume pressure on the pound, which will lead to a further fall, reaching 1.2837 and 1.2782 lows, where I recommend fixing the profits. If the data turns out to be much worse than economists' forecasts, the demand for the pound will return. In this scenario, it is best to rely on sales after the update of the maximum around 1.2972.
Indicator signals:
Moving Averages
Trade is conducted in the area of 30-day and 50-day moving, which indicates the formation of the lateral nature of the market.
Bollinger bands
Bollinger Bands indicator volatility is very low, which does not give signals on market entry.
Description of indicators
- MA (moving average) 50 days - yellow
- MA (moving average) 30 days - green
- MACD: fast EMA 12, slow EMA 26, SMA 9
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