To open long positions on GBP/USD, you need:
The growth of the average earnings level helped the pound to strengthen its position, but the main task remains the repeated test of the maximum of 1.2728, the breakthrough of which will lead to the growth of GBP/USD in the area of new levels 1.2765 and 1.2795, where I recommend fixing the profit. However, when opening long positions above 1.2728, pay attention to the divergence that is formed on the MACD indicator, which can limit the upward potential. If the pound falls in the first half of the day, you can look at the long positions on the rebound from the minimum of 1.2691 and 1.2653.
To open short positions on GBP/USD, you need:
Sellers of the pound need to form a false breakout in the resistance area of 1.2728, and the divergence on the MACD indicator will serve as an additional signal to open short positions in order to reduce to the area of the lows of 1.2691 and 1.2653, where I recommend taking the profit. With further growth of GBP/USD, it is best to expect sales to rebound from the new high of 1.2765.
Trading is above 30 and 50 moving averages, indicating a possible continuation of the bullish market scenario.
In case of the pound growth, the upper limit of the indicator in the area of 1.2730 will act as a resistance, the breakthrough of which will be a signal to buy.
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