GBP / USD: plan for the European session on October 29. Traders took a brea

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

The main task of the buyers of the pound last Friday managed, which led to the breakdown and consolidation above the resistance level of 1.2823. As long as trading is conducted above this range, the demand for GBP / USD will remain, which may hit a number of sellers stop-orders 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 1.2823, it is best to count on long positions for a rebound from the new monthly minimum around 1.2733.

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

A return below the level of 1.2823 will be a signal to open short positions in the pound in order to reduce to the support of 1.2777, the breakdown of which will lead to a new downward wave with the update of the lows of 1.2733 and 1.2697, where I recommend fixing the profits. In the case of GBP / USD growth in the first half of the day, you can count on short positions after updating a larger resistance at 1.2866, or a rebound from 1.2905.

Indicator signals:

Moving Averages

Trade is conducted between the 30-day and 50-day average, which indicates further uncertainty in the market direction.

Bollinger bands

The upper limit of the Bollinger Bands indicator around 1.2850 limits the upward potential, but its breakdown will be a signal to buy a pound. The lower limit around 1.2791 may also provide support for GBP / USD.

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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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