To open long positions on GBP/USD, you need:
Data showing that the UK economy is gradually slipping into a technical recession and a reduction in industrial production were ignored by traders, as all attention is focused on the situation around Brexit. At other times, such reports would have led to the collapse of the pair. Currently, buyers are trying to grasp the resistance of 1.2241, and while trading will be conducted over this range, we can expect the continuation of the upward correction in the area of the large level of 1.2884, where I recommend taking the profits. If the bulls miss the area of 1.2241 again, and this may happen after the data on the pace of inflation growth in the United States, it is best to count on long positions after the update of this month's low in the area of 1.2197. In the case of a breakdown of this range, I recommend considering new purchases only after the test of the lows of 1.2150 and 1.2112.
To open short positions on GBP/USD, you need:
Sellers need to return to the level of 1.2241, as only after that, it will be possible to talk about the continuation of the downward movement to a minimum of 1.2197. A breakthrough of this range will also lead to the demolition of a number of stop orders, as well as increase the pressure on the pair and collapse it to the lows of 1.2150 and 1.2112, where I recommend taking the profits. However, it will be possible to count on a major bearish momentum only after the appearance of negative news on Brexit, which can serve as talks between the Prime Minister of Great Britain and the Prime Minister of Ireland today. In the scenario of further growth of the pound on weak inflation data in the United States, you can count on short positions to immediately rebound from the maximum of 1.2284 or even higher from the larger level of 1.2331.
Trading is around 30 and 50 daily averages, indicating temporary market uncertainty with direction.
A break of the lower border of the indicator at 1.2197 will increase pressure on the pound.
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.