To open long positions on GBP / USD, you need:
Good US data led to a decrease in the British pound on Friday. There is no solution with Brexit, so growth is limited. Long positions can be seen after a false breakdown around 1.2570, and the last hope of buyers will be the level of 1.2527. The main task for today is the return and fixation above the resistance level of 1.2616, which will lead to a larger upward correction of GBP / USD to the maximum area of 1.2659, where I recommend fixing the profits.
To open short positions on GBP / USD, you need:
Sellers need a false breakout in the resistance area of 1.2616, which will be the first signal to short positions in the pound with an exit under the support level of 1.2570. Only fixing below this range will allow us to count on the continuation of the downward movement in GBP / USD, but the main task will be a breakthrough of the minimum of 1.2527, which will lead to the formation of a new downward trend.
Indicator signals:
Moving Averages
Trading has moved below the 30-day and 50-day moving averages, which indicates a continued decline in the pound. The 50-day average is a good resistance level, from which you can open short positions, but on condition of unsuccessful consolidation above.
Bollinger bands
The downward correction in the pair will be limited to the lower limit of the Bollinger Bands indicator around 1.2550, but the main goal will be at least 1.2527.
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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