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GBP/USD: plan for the European session on July 17, 2019
To open long positions on GBP/USD you need:
Pound buyers will try to focus on good data on inflation in the UK, however, as we remember, yesterday the report on the labor market did little to help. In a decline scenario for long positions, you can take a closer look at the support test of 1.2383, with the condition to confirm divergence on the MACD indicator, or to open long positions to rebound from a low of 1.2342. The main task of the bulls will be to return and consolidate above the resistance of 1.2452 and a test of the high of 1.2498, where I recommend to take profit.
To open short positions on GBP/USD you need:
Bears will try to reach the support level of 1.2383 in the first half of the day, but a further downward trend will depend on its breakthrough. If we manage to consolidate below this range, then we can count on GBP/USD to decline to the area of monthly lows of 1.2342 and 1.2266, where I recommend taking profits. With the growth of the pound on the data on inflation in the first half of the day, you can take a closer look at short positions on a false breakdown around 1.2452 or on a rebound from the high of 1.2498.
Indicator signals:
Moving averages
Trade is conducted below 30 and 50 moving averages, which indicates that the downtrend is maintained.
Bollinger bands
An unsuccessful breakthrough of the lower boundary of the indicator near 1.2400 could form an upward correction in the pair.
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
