Trading Conditions
Products
Tools
To open long positions on GBPUSD, you need:
In my morning forecast, I was quite cautious about the level of 1.2843 and recommended not to rely on it when making decisions on entering the market, however, it turned out to be in vain. On the 5-minute chart, another test of this area from top to bottom led to the formation of a good entry point into long positions. Quite positive data on the improvement of the situation in the UK labor market quickly drove the pound to the maximum of yesterday in the area of 1.2921, which will be the main battle for today. A breakout and consolidation above this range will form a good entry point into purchases, the main goal of which will be the resistance of 1.2991, where I recommend fixing the profits. Weak fundamental statistics on the US economy will help in this. However, long positions at highs are associated with high risk, so if there is no active action on the part of the bulls after updating the high of yesterday and returning the pair to the support of 1.2921, I recommend that you abandon long positions and wait for the return of GBP/USD to the middle of the side channel of 1.2843. Larger long positions can be opened immediately for a rebound only from the week's low in the area of 1.2777, based on a correction of 30-40 points within the day.
To open short positions on GBPUSD, you need:
The bears will once again try to protect the resistance of 1.2921, however, it is possible to open short positions from it only after updating the high of yesterday with the formation of a false breakout at 1.2921. The main goal will be to return the pound to the middle of the side channel of 1.2843, where I recommend fixing the profits. More persistent bears will remain until the test of the week's low of 1.2777, where the main struggle with the trend direction will unfold. If the market receives positive news related to the controversial Brexit bill, the pound will continue to grow above 1.2921. In this case, I do not recommend rushing with sales. It is best to wait for the resistance test of 1.2991 and the formation of a false breakout there in the expectation of a correction of 30-40 points within the day. Larger sellers will only make themselves known after the high of 1.3103 is updated.
Signals of indicators:
Moving averages
Trading is conducted above the 30 and 50 daily averages, which indicates the continuation of the formation of an upward correction.
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 1.2830 will provide support, from where I recommend buying the pair immediately for a rebound.
Description of indicators
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.