GBP / USD: plan for the American session on October 29. Pound refrained from falling

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

Buyers managed to form a false breakdown in the support area of 1.2825, which has now moved slightly below, to the area of 1.2804. As long as trading is conducted above this range, demand for GBP / USD will remain, which may hit a number of stop orders of sellers and form a larger upward correction to the highs of 1.2866 and 1.2905, where I recommend fixing the profits. In the event of a decrease in the pound under the support of 1.2804 in the second half of the day, it is best to count on long positions on a rebound from the new monthly minimum around 1.2733.

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

The bears failed to consolidate below the support of 1.2823 in the morning. The main task now is to breakdown and consolidate below today's low near 1.2804, which will serve as a signal to open short positions in the pound with the aim of reducing to the new monthly minimums in the areas of 1.2733 and 1.2697, where I recommend fixing the profits. In the case of GBP / USD growth in the second half of the day, you can count on short positions after the update of the large resistance of 1.2866 or on the rebound from 1.2905.

Indicator signals:

Moving Averages

Trade is conducted in the 30- and 50-day average, which indicates the formation of the lateral nature of the market.

Bollinger bands

Bollinger Bands indicator volatility is very low, which does not give signals on market entry.

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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
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