GBP / USD pair: plan for the European session on October 31. Downtrend persists

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

There's nothing buyers can do change the situation on the market. Today, it is possible to expect an upward correction on the pound in the case of a false breakdown in the support area of 1.2697 or after a breakout and consolidation above the resistance of 1.2738, where the 30-day moving average runs. Only after this, the demand for the pound may increase, which will lead to an update of the highs of 1.2781 and 1.2839, where taking profits are recommended. In the case of a further reduction in the trend below the level of 1.2697, long positions can only be considered after updating the levels of 1.2663 and 1.2625.

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

A break of the lower border of the upward correctional channel (on the green chart) or consolidation below 1.2697 support will push the British pound even lower, which will lead to the continuation of the downward trend with the update of the new monthly lows of 1.2663 and 1.2625, where fixing profits are recommended. An unsuccessful attempt to consolidate above resistance 1.2738 will also be a signal to open short positions in a pound. Otherwise, you can sell GBP / USD at a rebound from the maximum of 1.2781.

Indicator signals:

Moving averages

Trade is conducted under the 30- and 50-day average, which indicates the continuation of the downward trend in the pound.

Bollinger bands

The lower limit of the Bollinger Bands indicator located around 1.2677 will try to limit the downside potential in the pound. A breakthrough of which will only increase the pressure on the pair. In the case of GBP / USD growth, the upper limit in the 1.2745 area will limit the upward potential.

6I6FGor4_iMR5Uqi0PEgBsn6O29Ji5vJhcAFA10R

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