To open long positions on GBP/USD, you need:
Buyers of the pound are trying to get above the resistance of 1.2943 and push the pair to the maximum of this month in the area of 1.3012, and the lack of news on the UK and Brexit economies contributes to this. At the moment, while trading is above the support of 1.2943, we can expect continued strengthening of the GBP/USD pair in the area of the maximum of 1.3012, above which it will be difficult to breakthrough. Therefore, I recommend fixing the profits there. If the US data is better than economists’ forecasts, the pair will quickly return to the support of 1.2943. In this scenario, it is best to consider new long positions on the rebound from the larger level of 1.2875, which acts as the average boundary of the current side channel.
To open short positions on GBP/USD, you need:
Bears are not yet active after yesterday’s lowering of interest rates in the United States. All the focus is on today’s data on the incomes and expenditures of Americans, as well as the report on the labor market. Good indicators will quickly return GBP/USD under the support level of 1.2943, which will increase the pressure on the pair and push it back to the middle border of the side channel of 1.2875, where I recommend taking the profits. If the bulls continue to bend their line, in this case, you can look for short positions only after the update of this month’s highs in the area of 1.3012 or sell immediately on the rebound from the new resistance level of 1.3074.
Trading is above the 30 and 50 daily averages, indicating the bullish nature of the market.
In the case of a decline in the pound, the support will be provided by the average border of the indicator in the area of 1.2915, and you can buy a rebound from the lower border in the area of 1.2875.
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