GBP/USD: plan for the European session on Dec 12, 2019

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To open long positions on GBP/USD you need:

So we waited for the moment when both the political and economic fate of Great Britain, as well as the British pound, can be decided in one day. UK general elections for the Parliament will be held today, in which the victory of the Conservative Party will make it possible to secede from the EU. As for trading recommendations, it is difficult to predict something. It is best to postpone pound purchases until the results are published, or consider long positions after a major downward correction to the support area of 1.3108, 1.3049 and 1.2988. If the bulls continue to push the pair up, then large resistance levels can be observed in the areas of 1.3316, 1.3375 and 1.3437, where I recommend taking profits. It does not make sense to rely on US data within the day, as they will be ignored by the market.

To open short positions on GBP/USD you need:

Pound sellers will count on the victory of the Labour Party, which will significantly weaken the position of the British pound in the short term, or on the victory of the Conservative Party, which will not be able to regain a majority in Parliament, leaving the situation as it was before the election. Pressure on the pound will return under this condition. A return below the support of 1.3161 will hit the stop orders of the bulls and push GBP/USD to the area of lows 1.3108 and 1.3049, where I recommend taking profit. In case of a further upward trend, it is best to count on short positions in the pound after updating the highs in the areas of 1.3316, 1.3375 and 1.3437.

Signals of indicators:

Moving averages

Trade is conducted above 30 and 50 moving averages, which indicates a further growth of the pound.

Bollinger bands

In case the pound falls, support will be provided by the lower boundary of the indicator at 1.3130.

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 material has been provided by InstaForex Company – www.instaforex.com

Source:: GBP/USD: plan for the European session on December 12. X day for the British pound, politics and the UK economy

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