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GBP/USD: plan for the European session on April 26, 2019
To open long positions on GBP/USD, you need:
The pressure on the pound weakened but may return at any time. To prevent this, buyers need to consolidate above the resistance of 1.2917, which forms a new upward correction to the upper boundary of the wide side channel 1.2960, where I recommend fixing the profits. Also, you can count on long positions for the pound after the second update of this week’s low in the area of 1.2867, but under the condition that a false breakdown is formed after the release of data on the American economy in the afternoon. In a different scenario, buy GBP/USD is best on the rebound from 1.2812.
To open short positions on GBP/USD, you need:
While trading will be below the range of 1.2917, the pressure on the pound will remain. The main task of the bears will be the formation of a false breakout at this level, which will be a signal for opening short positions, and the repeated test of this week’s minimum in the area of 1.2867 will necessarily lead to a new wave of sales of GBP/USD with an exit to the level of 1.2812, where I recommend fixing the profits. In the scenario of returning to the resistance of 1.2917, it is best to consider short positions after the correction to the maximum area of 1.2960.
Indicator signals:
Moving Averages
Trading is conducted in the region of 30 and 50 moving averages, which indicates the likely formation of a side channel.
Bollinger Bands
Support will be provided by the lower border of the indicator Bollinger Bands in the area of 1.2870, the breakthrough of which will lead to a new sale of the pound
Description of indicators
- MA (moving average) 50 days – yellow
- MA (moving average) 30 days – green
- MACD: fast EMA 12, slow EMA 26, SMA 9
- Bollinger Bands 20
The material has been provided by InstaForex Company – www.instaforex.com
