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To open long positions on GBPUSD, you need:
Unfortunately, in the first half of the day, such a sweet sell signal as it was in the European currency was not formed in the GBP/USD pair, and therefore only those who sold yesterday and followed the trend further remained in the market. At the moment, if you look at the 5-minute chart, you can see how the bears managed to take the level of 1.2170, from which buyers did not even make a single attempt to correct. An important task for the second half of the day will be to return the pound to this range, since only in this scenario can we talk about an upward movement of GBP/USD to the area of the morning resistance of 1.225 and count on updating the maximum of 1.2275, where I recommend fixing the profits. If after the release of the report on retail sales in the US, there will be no activity from buyers in the area of 1.2170, it is best to postpone long positions until the update of the larger lows of 1.2127 and 1.2030, counting on correction of 30-35 points within the day.
To open short positions on GBPUSD, you need:
Bears have reached the support of 1.2170, and while trading is below this range, we can expect a further decline of the pair to the area of lows of 1.2127 and 1.2030, where I recommend fixing the profits. If the pressure on the pound is not formed at the beginning of the North American session, it is possible that speculative traders will rush to fix profits at the end of the week, which will lead to the pair’s return to the level of 1.2170. In this scenario, it is best to count on short positions after an upward correction to the resistance area of 1.2225 or sell immediately on a rebound from the maximum of 1.2275.
Signals of indicators:
Trading is below the 30 and 50 daily averages, which indicates a continuation of the bearish trend.
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.
A break in the lower border of the indicator at 1.2155 will increase pressure on the pair, while growth will be limited by the upper border of the indicator at 1.2230.
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 9
- Bollinger Bands (Bollinger Bands). Period 20
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Ruben Watson,
InstaForex Group © 2007-2020
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