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GBP/USD: plan for the European session on Nov 8, 2019
To open long positions on GBP/USD you need:
Yesterday’s decision by the Bank of England on the interest rate made traders nervous. Buyers are not yet very active, but they managed to protect the level of 1.2807 during the US session, on which quite a lot depends. As for the long positions today, you can only rely on them provided that a false breakout is formed in the region of 1.2807, but buying GBP/USD immediately on a rebound is best done after updating a low of 1.2762, or on a rebound from a larger level of 1.2713. The task of buyers in the afternoon will be to return to the resistance of 1.2838, which will limit the downward potential of the pound, again locking it in the side channel. In this scenario, we can expect a repeated update of the high of 1.2874, where I recommend profit taking.
To open short positions on GBP/USD you need:
Today, important fundamental statistics for the UK are not expected, so the focus will again be shifted to election campaigns. At the moment, the main goal of the pound sellers will be to break through and consolidate below the support of 1.2807, which will lead to a larger sale of GBP/USD with an update of the areas of 1.2762 and 1.2713, where I recommend profit taking. In the scenario of pair growth in the first half of the day, only the formation of a false breakout in the resistance area of 1.2838 will be the first signal to open short positions. I recommend selling the pair for a rebound only after updating a high of 1.2874.
Signals of indicators:
Moving averages
Trading is 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 1.2790 will increase pressure on the pound. Growth will be limited by the upper level of the indicator at 1.2865.
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
