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GBP/USD: plan for the European session on Sept 26, 2019
To open long positions on GBP/USD you need:
The British pound continued to decline against the US dollar after the British Parliament resumed its work, which intensified domestic political differences. Today, pound buyers will try to maintain the level of 1.2331, the test of which, together with the divergence, which is now being formed on the MACD indicator, will be the first signal to open long positions in the expectation of a return to resistance at 1.2413. A more important task for the bulls will be to break and consolidate above this range, which will lead to a breakdown of the downward trend and a test of a high of 1.2479, where I recommend taking profits. If the fall of GBP/USD continues further, then it is best to count on new long positions on a rebound from the lows of 1.2284 and 1.2238.
To open short positions on GBP/USD you need:
Sellers will try to reach the pair in the morning to a support of 1.2331, below which the fall may be limited by divergence on the MACD indicator. A more optimal scenario would be the sale of the pound after an upward correction to the resistance area of 1.2413, or short positions can be opened immediately for a rebound from the high of 1.2479. All attention today will be focused on data on the US economy, which will lead to returning the pressure on the pound, as well as on the speech of the Bank of England Governor Mark Carney, who may take a softer position in the current political and economic realities, which will further weaken the British pound and lead to update the lows 1.2284 and 1.2238, where I recommend taking profits.
Signals of indicators:
Moving averages
Trading below 30 and 50 moving averages, indicating a bear market in the short term.
Bollinger bands
If the pound drops in the morning, support will be provided by the lower boundary of the indicator at 1.2331, while growth will be limited by the upper level at 1.2398.
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
