GBP / USD pair: plan for the European session on October 26. The fall of the pound may slow down today

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

Pound buyers will try to keep support around 1.2782 today, which will be the first signal to open long positions based on the upward correction, suggesting itself for quite some time. However, the main task will be the breakdown and consolidation above the resistance of 1.2829, which will lead to the demolition of a number of stop orders of sellers and a larger increase in the area of highs 1.2866 and 1.2903, where fixing profits are recommended. In the case of a decrease in the pound under support of 1.2782, you can immediately buy to rebound from the new monthly minimum around 1.2733.

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

The formation of a false breakdown in the area of first resistance at 1.2829 will be a signal to open short positions in the pound to reduce to the support of 1.2782, the breakdown of which will lead to a new downward wave with the update of the lows of 1.2733 and 1.2697, where fixing profits are recommended. n the case of growth above 1.2829 in the first half of the day, you can count on short positions after updating the larger resistance of 1.2866, where the upper limit of the downward price channel is located or on the rebound from 1.2903.

Indicator signals:

Moving averages

Trade is conducted under the 30- and 50-day average, which indicates the bearish nature of the market.

Bollinger bands

The upper limit of the Bollinger Bands indicator around 1.2866 limits the upward potential, while the lower limit around 1.2782 can keep the pound from a new fall.

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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