GBP/USD: plan for the European session on May 6. The pound could continue to rise in anticipation of news on Brexit
May 6, 2019 8:24 am
To open long positions on GBP/USD you need:
Today, the British pound could continue to grow, as tomorrow the British prime minister should present a plan for the future prospects of UK membership in the EU customs union. In case of a downward correction in the first half of the day, support at 1.3096 will be a good level for buying, and it is possible to open long positions immediately to rebound in the region of a low of 1.3060. In the event of further growth, the task of the bulls will be concentrated on breaking through and consolidating above the resistance of 1.3155, which will lead to a further upward trend with an update of highs of 1.3195 and 1.3227, where I recommend taking profits.
To open short positions on GBP/USD you need:
Today, bears will focus on the formation of a false breakdown in the resistance area of 1.3155, from which it will be possible to build the lower boundary of the new downward channel. However, the main task of sellers will be a breakthrough and a return below the support level of 1.3096, which will push the GBP/USD pair to the area of lows of 1.3060 and 1.3018, where I recommend taking profits. With a growth scenario above 1.3155, you can sell for a rebound from a high of 1.3195 and 1.3227.
Indicator signals:
Moving averages
Trade is above 30 and 50 moving averages, which indicates a further increase in the British pound.
Bollinger bands
In the event of a decline, support will be provided by the lower limit of the indicator near 1.3035. Under growth scenarios, the upside potential of the pound will be limited to the upper boundary of the indicator in the area of 1.3215.
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
To open long positions on GBP/USD you need:
Today, the British pound could continue to grow, as tomorrow the British prime minister should present a plan for the future prospects of UK membership in the EU customs union. In case of a downward correction in the first half of the day, support at 1.3096 will be a good level for buying, and it is possible to open long positions immediately to rebound in the region of a low of 1.3060. In the event of further growth, the task of the bulls will be concentrated on breaking through and consolidating above the resistance of 1.3155, which will lead to a further upward trend with an update of highs of 1.3195 and 1.3227, where I recommend taking profits.
To open short positions on GBP/USD you need:
Today, bears will focus on the formation of a false breakdown in the resistance area of 1.3155, from which it will be possible to build the lower boundary of the new downward channel. However, the main task of sellers will be a breakthrough and a return below the support level of 1.3096, which will push the GBP/USD pair to the area of lows of 1.3060 and 1.3018, where I recommend taking profits. With a growth scenario above 1.3155, you can sell for a rebound from a high of 1.3195 and 1.3227.
Indicator signals:
Moving averages
Trade is above 30 and 50 moving averages, which indicates a further increase in the British pound.
Bollinger bands
In the event of a decline, support will be provided by the lower limit of the indicator near 1.3035. Under growth scenarios, the upside potential of the pound will be limited to the upper boundary of the indicator in the area of 1.3215.
Description of indicators
The material has been provided by InstaForex Company – www.instaforex.com
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