GBP/USD: plan for the European session on November 6. The pound’s upward movement could continue today
November 6, 2018 9:24 am
To open long positions for GBP/USD, it is required:
Weak data on the PMI index for the UK services sector failed to scare off buyers of the pound, who now overcame the resistance level of 1.3031 and are seeking further in the area of 1.3085 with the main goal of reaching 1.3135, where I recommend taking profit. In case the pound decreases in the first half of the day to the support level of 1.3031, it is also possible to count on long positions, provided the formation of a false breakout. In another scenario, you can buy on a rebound from a low of 1.2966.
To open short positions for GBP/USD, it is required:
Sellers will try to form a false breakout at 1.3085, which will lead to a small downward correction in the pound. However, the main goal will be to return to the support level of 1.3031, which will cause the closure of a number of long positions by major players, and it is likely that the GBP/USD will fall to the support area of 1.2966, where I recommend taking profits. In case of growth above 1.3085, the pound can be sold on a rebound from the high of 1.3135.
Indicator signals:
Moving averages
Trading is above the 30-day and 50-day average, which indicates the continuation of the uptrend.
Bollinger Bands
The break of the upper limit of the Bollinger Bands indicator in the area of 1.3085 will be a signal to buy the pound. If in first half of day the pair will decline, a good support will have a lower bound of the indicator in the area of 1.2991, where can you buy the pound only on the rebound.
Indicator description
Moving Average (average sliding) 50 days – yellow
Moving Average (average sliding) 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 for GBP/USD, it is required:
Weak data on the PMI index for the UK services sector failed to scare off buyers of the pound, who now overcame the resistance level of 1.3031 and are seeking further in the area of 1.3085 with the main goal of reaching 1.3135, where I recommend taking profit. In case the pound decreases in the first half of the day to the support level of 1.3031, it is also possible to count on long positions, provided the formation of a false breakout. In another scenario, you can buy on a rebound from a low of 1.2966.
To open short positions for GBP/USD, it is required:
Sellers will try to form a false breakout at 1.3085, which will lead to a small downward correction in the pound. However, the main goal will be to return to the support level of 1.3031, which will cause the closure of a number of long positions by major players, and it is likely that the GBP/USD will fall to the support area of 1.2966, where I recommend taking profits. In case of growth above 1.3085, the pound can be sold on a rebound from the high of 1.3135.
Indicator signals:
Moving averages
Trading is above the 30-day and 50-day average, which indicates the continuation of the uptrend.
Bollinger Bands
The break of the upper limit of the Bollinger Bands indicator in the area of 1.3085 will be a signal to buy the pound. If in first half of day the pair will decline, a good support will have a lower bound of the indicator in the area of 1.2991, where can you buy the pound only on the rebound.
Indicator description
Moving Average (average sliding) 50 days – yellow
Moving Average (average sliding) 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
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