GBP / USD pair: plan for the European session on November 7. Pound upward movement may start to slow down.

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

The pound strengthened against the US dollar after the publication of the results of elections to the US Senate, announcing that the Republicans won. In order to maintain an upward trend, buyers need a breakdown of resistance at 1.3138, which will open the way to new daily highs of 1.3186 and 1.3233, where taking profits are recommended. In case of a decrease in the pound in the first half of the day, you can count for support around 1.3085, but on the condition that a false breakdown is formed or a rebound from the minimum of 1.3031.

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

Sellers will try to form a false breakdown at 1.3138, which will lead to a small downward correction in the pound. However, the main goal will be to return to the support level of 1.3085, which will cause the closure of a number of long positions by large players and it is likely that the GBP/USD pair will fall to support area 1.3031, where taking profits are recommended. In the case of growth above 1.3138, you can sell a pound to rebound from the highs of 1.3186 and 1.3233.

Indicator signals:

Moving averages

Trade is conducted above the 30- and 50-day average, which indicates a continuation of the uptrend.

Bollinger bands

A break of the upper limit of the Bollinger Bands indicator around 1.3138 will be a signal to buy pounds. If in the first half of the day the pair will decline, a good support will be provided by the lower limit of the indicator around 1.3055, which coincides with the 50-day moving average and where you can buy a pound immediately for a rebound.

Bollinger Bands indicator around 1.3138 will be a signal to buy pounds. If in the first half of the day, the pair will decline. A good support will be provided by the lower limit of the indicator around 1.3055, coinciding with the 50-day moving average and where you can buy a pound immediately for a rebound.

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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