GBP / USD: plan for the European session on October 30. Bulls do not cope with the pressure of bears

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

Pound buyers made several unsuccessful attempts, but the market is gradually moving towards the sellers. The first signal to open long positions will be the formation of a false breakdown and a return to the support level of 1.2776, which will lead to an upward correction in the area of 1.2839, where I recommend fixing the profits. The main task of the buyers will be the breakthrough and consolidation above the resistance of 1.2839, from which the maximum of 1.2905 and 1.2947 open. In the event of a decline in GBP / USD under the support level of 1.2776, it is best to return to long positions after updating the lows of 1.2733 and 1.2697.

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

Breaking the lower boundary of the upward correctional channel (on the green chart) or fixing below the support level of 1.2776 could return the big sellers of the pound to the market, which will lead to the continuation of the downward trend with the update of the new monthly lows of 1.2733 and 1.2697, where I recommend fixing the profit. An unsuccessful attempt to consolidate above the resistance level of 1.2839 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 1.2905.

Indicator signals:

Moving Averages

Trade returned under the 30- and 50-day average, which indicates a possible return to the market of large buyers.

Bollinger bands

There are no signals to enter the market on the Bollinger Bands indicator due to low volatility.

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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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