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

To open long positions on GBP/USD you need:

Good data on the economy, which indicated the absence of a recession at the end of this year, as well as the refusal of the leader of Brexit Party, Nigel Faraj to fight for seats in the Conservative Party, led to a sharp increase in the pound. Now the bulls’ task is to break the resistance of 1.2874, which will lead to a new wave of GBP/USD growth with updating highs around 1.2910 and 1.2941, where I recommend profit taking. The formation of a false breakout in the resistance area of 1.2850 will also be an additional signal to buy the pound. If the pair decreases due to weak data on changes in the number of applications for unemployment benefits and unemployment in the UK, you can count on long positions in the support area of 1.2827, as well as buy on the rebound from a low of 1.2799

To open short positions on GBP/USD you need:

Today, sellers will try to keep the pair below the resistance of 1.2874, and the formation of a false breakout there, together with weak data on the UK labor market, will only increase pressure on the pound. However, a more important task for sellers will be to return under the support of 1.2850, which will lead to the sale of GBP/USD to the low of 1.2827 and 1.2799, where I recommend profit taking. In the scenario of the pair’s further growth after data and news on elections in the UK, short positions can be opened by a rebound from a high of 1.2910, and from a larger resistance of 1.2941.

Signals of indicators:

Moving averages

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

Bollinger bands

If the pair decreases, support will be provided by the lower boundary of the indicator at 1.2840. The pound will be limited by the upper level of the indicator at 1.2880.

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 November 12. UK election news supports the British pound