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


To open long positions on GBP/USD you need:

Yesterday, the bears began to actively get rid of the British pound, and everything indicated the continuation of the downward trend in the pair after the breakdown of support 1.2270. However, rumors that spread at the conference of the Conservative party of Great Britain that Boris Johnson will soon present the EU with his Brexit plan that includes proposals on many important issues has helped the bulls regain their positions in the afternoon. If you look at it this way, then nothing has changed from a technical point of view. The next formation of a false breakdown in the region of 1.2270 will be a signal to buy the pound, which will lead to an upward correction of the pair to the area of the upper boundary of the side channel at 1.2327, consolidating above which will strengthen demand for GBP/USD, which will update resistance at 1.2364, where I recommend taking profit. If the level of 1.2270 is nevertheless broken due to data on the construction industry, it is best to consider new purchases in GBP/USD after updating the lows near 1.2233 and 1.2198.

To open short positions on GBP/USD you need:

Bears managed to protect the 1.2327 level yesterday, to which I have repeatedly paid attention. It will be possible to talk about the continuation of the bearish trend only after breaking the support of 1.2270, which can lead to a further decrease in GBP/USD to 1.2233 and a test of the week’s low in the area of 1.2198, where I recommend taking profit. If the pressure on the pair weakens, which can happen only after a good report on the UK construction industry is released, or positive news on Brexit appears, it is best to sell the pound after an upward correction to the upper boundary of the side channel at 1.2327, provided that there is a false breakdown there, or immediately a rebound from a high of 1.2364.

Signals of indicators:

Moving averages

Trade is carried out in the region of 30 and 50 moving average, which indicates some market uncertainty.

Bollinger bands

In case the pound declines, support will be provided by the lower boundary of the indicator in the region of 1.2227, while the upper boundary of the indicator in the region of 1.2330 will act as resistance.

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 –

Source:: GBP/USD: plan for the European session on October 2. Regular rumors supported the pound and returned the pair to a resistance

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