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To open long positions on GBPUSD, you need to:
Even in the morning forecast, I paid attention to the formation of a technical reversal model "head-shoulders" and the need to break through the support of 1.3315. Everything went exactly according to the textbook. Let's look at the 5-minute chart. The breakdown and consolidation below the support of 1.3315 led to a sale of the pound. After the release of the PMI report for the service sector, a second test of 1.3315 took place, which only confirmed the correctness of entering short positions, after which the pound continued its decline. Now the pair is aiming for the support of 1.3243, where the next fight for the level will unfold. Bulls need to protect this range, however, only the formation of a false breakout at 1.3243 will be a signal to open long positions in the expectation of a correction to the resistance area of 1.3315, where I recommend fixing the profits. It is not necessary to talk about the return of buyers to this level, since this requires very weak fundamental indicators for the American economy. If there is no activity from the bulls around 1.3243, it is best to postpone long positions to the test of a larger minimum of 1.3165 and buy GBP/USD from there in the expectation of a correction of 30-40 points within the day.
To open short positions on GBPUSD, you need to:
Sellers continue to control the market and their next goal will be the support of 1.3243. Most likely, the first test will have a small technical rebound of 20-25 points, however, it is more important that there are good reports on the ISM index for the US non-manufacturing sector and the labor market. Only in this case, you can expect to fix the pound below this level, which forms an additional signal to sell GBP/USD in the expectation of updating the lows of 1.3165 and 1.3115, where I recommend fixing the profits. In the scenario of a larger rebound from the low of 1.3243 in the second half of the day, it is best not to rush with short positions, but to sell again for a rebound from the resistance of 1.3315.
Signals of indicators:
Moving averages
Trading is conducted below the 30 and 50 daily averages, which indicates the continuation of a downward correction for the pair.
Note: The period and prices of moving averages are considered by the author on the H1 hourly chart and differ from the general definition of the classic daily moving averages on the D1 daily chart.
Bollinger Bands
If the pound grows, you can open short positions on a rebound from the upper limit of the indicator in the area of 1.3365.
Description of indicators
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