GBP / USD: plan for the European session on October 8. The pound may start correction down

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

Today in the morning, you can consider buying a pound after updating the support level of 1.3074, where the 30 moving average is located. In the absence of demand for a pound in this range, you can immediately buy to rebound from a larger support of 1.3032. The main task of the bulls will be the return and consolidation above the resistance of 1.3115, which will lead to the continuation of the upward trend with access to the new highs of 1.3158 and 1.3212, where I recommend fixing the profit.

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

Sellers return to the market only after an unsuccessful breakdown and the formation of a false breakdown at the resistance level of 1.3115, and their main goal will be to reduce and update the support level of 1.3074, which will lead to a larger sale of the pound to the area of 1.3032, where the lower limit of the ascending channel will be formed. In the case of GBP / USD rising above 1.3115 in the first half of the day, short positions can be opened immediately to rebound from a maximum of 1.3158.

Indicator signals:

Moving Averages

The price gradually decreases to the area of the 30 moving average, which can provide support.

Bollinger bands

The lower border of the Bollinger Bands, which is located in the 1.3065 area, will support the pound in the event of its decline, while the upper limit in the 1.3145 area will act as good resistance.

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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