To open long positions on GBPUSD, you need:
The British pound made a sharp jump of more than 100 points in the European session, but after reaching the maximum of January this year, traders began to take profits, which led to the return of market equilibrium and the pair's decline in the range of 1.3066-1.3106. Pressure on the pound remains due to trade negotiations with the EU. Last week, the EU's negotiator for dialogue with the UK, Michel Barnier, noted the existence of serious disagreements on a number of issues following the first round. At the moment, the bulls are focused on breaking the resistance of 1.3106, which may lead to the second wave of growth of the pound to the highs of 1.3140 and 1.3185, where I recommend taking the profits. In the scenario of a decline in the area of the minimum of 1.3006, it is best to return to long positions only on a false breakdown or buy GBP/USD from the lows of 1.3030 and 1.2996.
To open short positions on GBPUSD, you need:
Sellers got everything they wanted from this year's highs today, and now the situation on the market is stabilizing after a serious surge in volatility. Bears need to form a false break in the resistance area of 1.3106 in the second half of the day, which will increase the pressure on the pair and lead to a downward correction and a repeat test of the area of 1.3066. However, only its breakthrough will collapse GBP/USD to the lows of 1.3030 and 1.2996, where I recommend fixing the profits. If the growth wave is repeated in the US session, it is best to return to short positions at the test of the maximum of 1.3140 or sell the pound immediately on a rebound from the annual resistances of 1.3185 and 1.3228.
Signals of indicators:
Moving averages
Trading is conducted above the 30 and 50 daily averages, which indicates the continued growth of the pound.
Bollinger Bands
Growth will be limited to the upper level of the indicator around 1.3170. If the pair declines, the lower border of the indicator around 1.2996 will provide support.
Description of indicators
Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9Bollinger Bands (Bollinger Bands). Period 20