To open long positions on GBP / USD, you need:
In the morning, pound buyers failed to hold positions, which led to a quick sale. The Bank of England report on Brexit did not clarify. At the moment, it is best to expect long positions after the update of support of 1.2746, with the formation of a false breakdown there or a rebound from a minimum of 1.2721. The main task will be a breakthrough and consolidation above the resistance of 1.2788, which will lead to a return to the highs of the day at 1.2835, where I recommend fixing the profits.
To open short positions on GBP / USD, you need:
An unsuccessful consolidation after the correction to the resistance of 1.2788 will be another signal to open short positions in the pound in order to reduce and breakdown support of 1.2746, which will lead to a quick sale to the area of the minimum of 1.2721, where I recommend fixing the profit. In case of growth above 1.2788 in the second half of the day, you can sell a pound to rebound from the daily maximum in the area of resistance 1.2835.
Indicator signals:
Moving Averages
Trade is conducted in the area of 30 and 50-day moving averages, which indicates another market uncertainty.
Bollinger bands
In the case of an upward correction of the pound in the second half of the day, the average border of the Bollinger Bands indicator in the area of 1.2750, located in the area of 1.2815 and from which you can sell the pound immediately to rebound, will act as resistance.
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
The material has been provided by InstaForex Company -
www.instaforex.com