GBP / USD pair: plan for the European session on November 8. The pressure on the pound can return at any time

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

The demand for the pound is gradually slowing down, which may lead to a large decline after the Fed's decision on interest rates today. You can return to purchases when a false breakdown is formed in the support area of 1.3105, where the 50-day moving average runs and the lower limit of the ascending channel is also located. In the case of a breakdown of this level, it is best to open long positions in GBP/USD pair to rebound from a minimum near 1.3031. The main goal of the bulls will be a breakthrough and consolidation above the resistance of 1.3175, which will be extremely difficult to do.

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

Pound sales can be considered for a rebound from the weekly high around 1.3175 or after the breakdown and consolidation below 1.3105 support since the first test of this level, buyers will try to form a false breakdown. With which, this will bring some confusion to the market. The main goal of GBP/USD sellers will be the update of major support around 1.3031, where taking profits are recommended. In the case of growth above 1.3175 in the first half of the day, you can sell a pound to rebound from a high of 1.3233.

Indicator signals:

Moving averages

Trade returned to the same level from the 30-day and 50-day moving average, which indicates a possible change in market sentiment.

Bollinger bands

A break of the lower border of the Bollinger Bands indicator around 1.3105 will be a signal to sell a pound.

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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