GBP/USD: plan for the European session on July 2, 2019

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To open long positions on GBP/USD you need:

The main task of the buyers of the pound for the first half is to consolidate above the resistance of 1.2660, which will lead to a sharper upward impulse of GBP/USD to the area of a high of 1.2703 and to the test of large resistance at 1.2741, where I recommend to lock in the profit. In case the pound further declines, it is best to buy if a false breakout is formed in the support area of 1.2623, with confirmation of the divergence on the MACD indicator, or a rebound from a new low in the area of 1.2582.

To open short positions on GBP/USD is required:

Bears will count on a re-test of support at 1.2623, the breakthrough of which will keep the downward momentum in the pair and will lead to another low in the area of 1.2582, where I recommend taking profits in the morning. In case the GBP/USD grows, it is best to return to short positions after the test of resistance at 1.2663, provided there is a false breakdown there, or to rebound from a high of 1.2703.

Indicator signals:

Moving averages

Trading is below 30 and 50 moving averages, which indicates a downward correction in the pair.

Bollinger bands

The upward correction will be limited to the upper boundary of the channel in the region of 1.2695, while a breakthrough in the lower boundary in the region of 1.2623 will strengthen the bearish momentum.

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

Source:: GBP/USD: plan for the European session on July 2. The pound continues to slowly slide down

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