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GBP/USD: plan for the European session on Nov 5, 2019
To open long positions on GBP/USD you need:
Even with a decline, buyers do not show activity, which gradually returns the British pound to the area of larger support levels. Today there is a report on activity in the UK services sector, which may put pressure on the pair, as there has been a decrease in it recently. Only the formation of a false breakout in the support area of 1.2875 will be the first signal to open long positions. Otherwise, it is best to purchase around after updating the 1.2845 support, and it’s better to immediately rebound from the major low of last week at 1.2807. If the data turn out to be better than economists’ forecasts, the bulls will try to return to a resistance of 1.2925, where I recommend profit taking.
To open short positions on GBP/USD you need:
Sellers will expect to consolidate the pair below the support of 1.2875 and weak data on activity in the service sector, which could push the pound further to the area of larger lows at 1.2845 and 1.2807, where I recommend profit taking. The further upward trend will depend on how the bears show themselves in the support area of 1.2807. If the report leads to an increase in GBP/USD in the morning, you can consider new short positions after updating the resistance of 1.2925, or sell immediately for a rebound from a high of 1.2971.
Signals of indicators:
Moving averages
Trade is conducted below 30 and 50 moving averages, which indicates a possible decline in the pound in the short term.
Bollinger bands
A break of the lower boundary of the indicator at 1.2865 will increase pressure on the pound. Growth will be limited by the upper level of the indicator at 1.2925.
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
