To open long positions on GBP/USD, you need:
The expected decision on interest rates from the Bank of England and a weak retail sales report all led to a slight decline in the pound in the first half of the day to the lows of yesterday. However, a larger downward movement was not formed again, which locks the pair in an even larger narrow side channel. At the moment, buyers need to break through the resistance of 1.2505, which was formed last week. Only such a scenario will allow us to count on new highs in the area of 1.2555 and 1.2600, where I recommend fixing the profits. If the data on the US economy will help the dollar in the second half of the day, I recommend returning to long positions only for a rebound from the week's low in the area of 1.2397, or the new support of 1.2345.
To open short positions on GBP/USD, you need:
Due to the weak report on the volume of retail sales in the UK, sellers are still able to keep the pair below 1.2505, but the breakdown of this range can create quite serious problems. As long as the trade is conducted under the resistance of 1.2505, the pressure on the pound will remain, which leaves hope for a downward correction to the support area of 1.2397 and for a larger exit to the minimum of 1.2345, where I recommend taking the profits. If reports on the US economy led to the growth of GBP/USD above the resistance of 1.2505, it is best to consider new short positions after updating the maximum of 1.2555 or sell the pound on a rebound immediately from the level of 1.2600.
Trading around 30 and 50 moving averages, indicating some market uncertainty.
Volatility is very low, which does not give signals to enter the market.
Description of indicators
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.