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To open long positions on GBPUSD, you need:
The British pound broke through several fairly important resistance levels this morning, however, it was not possible to wait for the formation of convenient entry points for long positions. Let's figure it out. The pound rose against the background of another rumor that by the end of the week, the UK and the EU will be able to find a common language and sign a trade agreement, after which it will only be necessary to understand the nuances of problematic issues. Against this background, the pound flew up. However, without specifics, these rumors will quickly return sellers at such favorable prices. Further, after the breakout of 1.2800, the pair failed to return to this level and no buy signal was formed. A small rebound and consolidation under the level of 1.2863 led to a new breakout of the area, however, there was no return to enter long positions.
Now the bulls are focused on continuing growth and are waiting for an update to the maximum of 1.2962, where I recommend fixing the profits. I recommend opening new long positions, if you have not managed to enter the current bullish momentum, only after a downward correction and the formation of a false breakout in the support area of 1.2863. You can buy GBP/USD immediately on the rebound from the minimum of 1.2800, based on a correction of 30-40 points within the day.
To open short positions on GBP/USD, you need:
Sellers are still confused after such a grand demolition of stop orders, and apparently, no one will return to the market without understanding what is happening. It is best to open short positions immediately for a rebound from the resistance of 1.2962, based on a correction of 30-40 points within the day. An equally important task for the bears will be to return and consolidate under the support of 1.2863. However, I recommend opening short positions from there only after testing this level from the bottom up on the volume, which will lead to the formation of a new downward wave in the area of the minimum of 1.2744. The longer-term target will be 1.2689, where I recommend taking the profit.
Signals of indicators:
Moving averages
Trading is conducted above 30 and 50 daily averages, which indicates the formation of a large bullish correction in the market.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.
Bollinger Bands
If the pair declines, the average border of the indicator in the area of 1.2770 will provide support.
Description of indicators
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