GBP / USD pair: plan for the European session on October 5. The pound has grown, but the upside potential is limited.

To open long positions on GBP / USD pair, you need:

Today, pound buyers will focus on the resistance level of 1.3026, the breakdown of which will lead to a larger upward correction in the area of highs 1.3077 and 1.3110. A correction will be formed on exiting the stop orders of pound sellers. In the case of GBP / USD decline in the first half of the day, long positions can return to the test of the support level of 1.2975, from which the lower limit of the ascending channel will be formed or to rebound from the weekly minimum of 1.2926.

To open short positions on GBP / USD pair, you need:

Pound sellers will count on the formation of a false breakdown and a return below the resistance level of 1.3026, which may lead to a downward correction to the mid-channel area of 1.2975, where taking profits are recommended. A larger downward movement of the pound will depend on data on the US labor market, which is expected in the afternoon. In the case of growth above 1.3026 in the European session, short positions can be returned to the rebound from the highs of 1.3077 and 1.3110.

Indicator signals:

Moving averages

The 30- and 50-averages are on the same level with each other, indicating the formation of a side trend in the short term. A plus for buyers is the fact of above-average trading.

Bollinger bands

In the case of an attempt to grow the pound in the first half of the day, the upper limit of Bollinger Bands will be in the form of resistance, which is located around 1.3035, and from which you can see short positions.

analytics5bb704e164d25.png

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