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GBP/USD: plan for the European session on Sept 10, 2019
To open long positions on GBP/USD you need:
The British pound rose yesterday in the morning, but failed to maintain an upward momentum and break above the important resistance of 1.2387, which I paid attention to. Growth occurred after the release of data on the UK economy, which strengthened by 0.3% in July this year compared with June. At the moment, the goal of buyers is the same breakthrough of resistance at 1.2387, which will save the bull market and open the way to highs of 1.2427 and 1.2460, where I recommend taking profits. If the bears continue the downward correction in the morning, support will be provided by the level of 1.2325, where you can see purchases subject to the formation of a false breakdown. However, long positions can be opened immediately for a rebound in the region of a low of 1.2278.
To open short positions on GBP/USD you need:
Nothing has changed for sellers from a technical point of view. They will continue to actively defend a high of 1.2387, and the formation of a false breakdown there in the first half of the day will necessarily lead to the correction of GBP/USD to the support area of 1.2325. A more important task will be a breakthrough and consolidation below support at 1.2325, which will lead to further movement down to the area of 1.2278 and 1.2237, where I recommend taking profits. If the bullish momentum in the European session persists after the release of data on the UK labor market, which will lead to a breakthrough of resistance at 1.2387, it is best to consider new short positions after updating local highs in the areas of 1.2427 and 1.2460. However, without Brexit news, and preferably positive, counting on a larger growth of GBP/USD will be very problematic.
Signals of indicators:
Moving averages
Trade is conducted in the region of 30 and 50 moving average, which indicates some market uncertainty in the short term.
Bollinger bands
In case of pound growth, a break of the upper boundary at 1.2370 will lead to a new wave of growth. A break of the lower boundary of the indicator in the region of 1.2325 may strengthen the downward correction.
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
