GBP/USD: plan for the US session on October 8. Buyers take their time to return to the pound

To open long positions for GBP/USD, it is required:

Another rumor that the UK will achieve an agreement with the EU no longer provide support to the pound, which forces investors to look at the market soberly. This is reflected in the rate of the British pound. Today only the area of 1.3032 was able to provide support, which I drew attention to in my morning forecast. However, there is also no serious demand for the pound. In case of a decrease below the level of 1.3032, I recommend to return to long positions only to a rebound from the support of 1.2982. The main task of buyers for the second half of the day will be to consolidate above the resistance of 1.3074, which will limit the corrective growth of the pound.

To open short positions for GBP/USD, it is required:

A re-test of support at 1.3032 may lead to a new wave of selling of the British pound with the exit already at a low in the area of 1.2982, where I recommend to lock in the profit. In case of an upward correction in the second half of the day, short positions can be returned after updating the resistance at 1.3074, just above which the 30-day moving average is located.

Indicator signals:

Moving averages

The price moved below the 30 and 50 average, but this indicates only a corrective decline in the pound with an attempt to form the lower limit of the upward channel.

Bollinger Bands

The repeated test of the lower border of the Bollinger Bands around 1.3030 will lead to a new huge selling of the pound. The growth will be limited by the middle of the channel around 1.3090.

analytics5bbb58335d819.png

Indicator description

  • Moving Average (average sliding) 50 days - yellow
  • Moving Average (average sliding) 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