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GBP/USD: plan for the European session on Aug 29, 2019
To open long positions on GBP/USD is required:
The British pound tried to regain its position against the US dollar, after a major sell-off, which was associated with the British prime minister’s statement about the possible suspension of Parliament. However, the bulls did not manage to go above the resistance of 1.2245, which I drew attention to in my yesterday’s review. At the moment, the main task of buyers is to break through this range, as only this will provide a new impetus to the bulls with the update of highs in the area of 1.2301 and 1.2343, where I recommend to take profits. If the pressure on the pound continues, which is likely, only the formation of a false breakout in the support area of 1.2195 will allow buyers to return to the market. Otherwise, it is best to open long positions on the rebound from a low of 1.2158.
To open short positions on GBP/USD is required:
The main task of the pound sellers is to break through and consolidate below the support of 1.2195, which will necessarily lead to the demolition of a number of stop orders of buyers below this level, and a further decrease in GBP/USD to the low of 1.2158 and 1.2123, where I recommend taking profit. Pressure on the pound will continue to be exerted by news of the likely suspension of Parliament. Only the failure of Boris Johnson’s attempt to implement this measure will return the demand for the pair. In the scenario of growth in the first half of the day, it is best to count on short positions after the formation of a false breakout in the resistance area of 1.243, or sell immediately on a rebound from the weekly high in the area of 1.2301.
Signals of indicators:
Moving averages
Trading is below 30 and 50 moving averages, which indicates a possible continuation of the pound’s fall.
Bollinger bands
In case the pound grows, the upward potential of the indicator will be limited by the upper boundary of the indicator in the region of 1.2243. A break of the lower border at 1.2195 will increase pressure on the British 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
