GBP / USD pair: plan for the European session on November 1. Trader waiting for the decision of the Bank of England interest

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

Regular rumors on Brexit supported the pound today in the Asian session. Now, it is expected that an agreement will be reached by November 21. As for purchases, it is best to wait for the decision of the Bank of England on interest rates and look at the market reaction. If they are not allowed below 1.2839 and make a false break, it is recommended to open long positions based on the continuation of the upward correction to areas 1.2905 and 1.2947, where it is best to take profits. In the case of a decline under the support of 1.2839 in the first half of the day, purchases can be considered to rebound from the area of 1.2767, where the moving averages are now located.

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

The Bank of England regards hikes. With this option, it is possible to quickly push the pound down to the areas of 1.2767 and 1.2703, where taking profits are recommended. In cathe se of resumption of the correction , short positions can return when a false breakdown is formed in the region of the maximum of 1.2905 or to the rebound from 1.2947 and 1.2981.

Indicator signals:

Moving averages

Trade has moved above the 30- and 50-day average, which indicates the formation of an upward correction in the pound. In case of a decline, a test of these levels will be a signal to buy.

Bollinger bands

The Bollinger Bands indicator is located in the 1.2805 area. A signal to buy pounds.

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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