To open long positions on the GBP / USD pair, you need:
Pound buyers cannot find a good level of support from which an upward correction could be built. At the moment, the task of the bulls is to breakdown and consolidate above the resistance of 1.2900, which will lead to an increase in the pound to the area of resistance at 1.2929, where I recommend taking profits. In case the price further reduces, it is best to consider a long position after the formation of a false breakdown in the region of 1.2867 or rebound from a larger minimum of 1.2812.
To open short positions on the GBP / USD pair, you need:
Bears will try to prevent the growth of the pound above the resistance of 1.2899 and the formation of a false breakdown after correction in the second half of the day, which will lead to another reduction of the GBP/USD pair to the low of 1.2867. The main task of the pound sellers is to fix below this range with the update of the level of 1.2812, where I recommend fixing the profit. In case that the growth is above the resistance of 1.2899, you can sell the pound on a rebound from the maximum of 1.2929.
Trade is conducted below 30 and 50 moving averages, which indicates the preservation of the bearish nature of the market.
In the case of growth, the upper limit of the Bollinger Bands indicator around 1.2924 will act as resistance from which you can sell a pound for a rebound.
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 market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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