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To open long positions on GBPUSD, you need:
In my morning forecast, I recommended opening long positions after the breakout and consolidation above the level of 1.2843, which happened. On the 5-minute chart, the bulls gained a foothold above this resistance, even testing it several times from top to bottom, forming an excellent entry point for long positions. While trading will be conducted above the level of 1.2843, the continuation of the upward correction to the area of the maximum of 1.2921 can be expected, where I recommend fixing the profits. A further target will be the area of 1.2991. If the pound falls below the level of 1.2843, it is best to postpone long positions until the update of a large monthly minimum of 1.2777 or open long positions immediately for a rebound from the support of 1.2725 in the expectation of a correction of 30-40 points within the day. Given the lack of important fundamental statistics, the bulls have a chance to continue growing.
To open short positions on GBPUSD, you need:
It's too early for bears to panic. This week, hearings in the British Parliament will begin on the Brexit bill, which will continue to put pressure on the GBP/USD pair. Therefore, sales can be delayed until the update of the larger resistance of 1.2921. However, even if the growth scenario is even higher, you can safely sell the pair for a rebound from the maximum of 1.2991 and wait for the resumption of the bear market. No less important task in the short term will be the return of the bears to the level of 1.2843, the test of which from the bottom up forms a fairly good entry point into short positions that will lead GBP/USD to the area of the minimum of 1.2777. All further downward movement in the short term depends on the breakout of this level. This scenario will lead to a test of the new ranges of 1.2725 and 1.2675.
Signals of indicators:
Moving averages
Trading is just above the 30 and 50 daily averages, which indicates that the bulls are trying to build an upward correction in the pair.
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 classic daily moving averages on the daily chart D1.
Bollinger Bands
If the pound declines, the lower border of the indicator around 1.2775 will provide support, from where I recommend buying the pair immediately for a rebound.
Description of indicators
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