To open long positions on GBP/USD you need:
The current decision of the Bank of England will increase the pressure on the British pound, as forecasts for economic growth may be revised to the worse. Theresa May's unsuccessful negotiations with EU representatives only aggravated the situation with the pound. Today, buyers need the next formation of a false breakdown in the support area of 1.2923, which will be the first signal to open long positions with an outlook to return to the upper boundary of the side channel in the area of 1.2976, where I recommend taking profits. A breakthrough of this range can take place only after positive statements from the Bank of England, which will lead to a high of 1.3025. In case of a decline below the level of 1.2923, large support areas are seen in the range of 1.2878 and 1.2833, where you can buy the pound immediately to rebound.
To open short positions on GBP/USD you need:
Comments of the governor of the Bank of England will determine the future direction of the pound. Bears need a breakthrough of support at 1.2923, consolidating under which will increase the pressure on GBP/USD, which will lead to an update of the next monthly lows in the area of 1.2878 and 1.2833, where I recommend taking profits. In the event that the pound increased in the first half of the day, ahead of the decision of the Bank of England, you can take a closer look at short positions from the upper boundary of the lateral channel 1.2976. Otherwise, it is best to sell GBP/USD to rebound from 1.3025.
Indicator signals:
Moving averages
Trade is conducted below the 30-day and 50-day moving, which indicates the further formation of the downward movement.
Bollinger bands
In case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.2966 will be a good level for opening short positions in a pound.
Description of indicators
MA (moving average) 50 days - yellowMA (moving average) 30 days - greenMACD: fast EMA 12, slow EMA 26, SMA 9Bollinger Bands 20