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GBP/USD: plan for the European session on August 7, 2019
To open long positions on GBP/USD you need:
Yesterday’s news about strengthening the adversary’s camp, Prime Minister Boris Johnson’s intentions for Brexit led to a slight increase in the British pound in the morning, but this did not lead to more serious support from major players. New support at 1.2140, which was formed yesterday, still holds GBP/USD and retains a chance to continue the upward correction. The formation of a false breakdown in the morning at this level will be a direct signal to open long positions in the pound, however, the main task is to break through and consolidate above the resistance of 1.2203. Only in this scenario can we expect a larger upward correction to the area of a high of 1.2273, where I recommend taking profits. If bulls miss the support area of 1.2140, then in this case it is best to buy from lows of this year in the region of 1.2083.
To open short positions on GBP/USD you need:
Bears are trying by all means to keep the pair below the resistance of 1.2203, and the formation of a false breakdown there in the morning will be a direct signal to open short positions. We see that the market’s reaction to yesterday’s good Brexit news was insignificant, therefore, any negative statements by British Prime Minister Boris Johnson could lead to another major downward trend in the low of the year at 1.2083, and then to update bigger support in the area of 1.2040 and 1.1985. where I recommend taking profits. If the bulls manage to move above the resistance of 1.2203 in the first half of the day, then in this scenario it is best to look for new short positions for a rebound from a resistance of 1.2273.
Signals of indicators:
Moving averages
Trade in the region of 30 and 50 moving averages, indicating short-term market uncertainty.
Bollinger bands
Volatility is very low, which does not provide signals on entering the market.
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
