GBP / USD: plan for the European session on November 27. The pound is waiting for news on Brexit from the Bank of England

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

Yesterday, buyers failed to hold above a rather important resistance level of 1.2861, and the main task today for the first half of the day will be to maintain support at 1.2800. In the case of its breakdown, it is best to return to long positions in GBP / USD only after the update of this month's minimum around 1.2723. The formation of a false breakdown around 1.2800 will be a signal to buy the pound, and a breakthrough and consolidation above the resistance level of 1.2861 will lead to the upper boundary of the side channel of 1.2924, where I recommend fixing the profits.

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

The bears need to break below 1.2800, and, most likely, they will be able to do it, since the above level has already been hit a lot of times. The breakdown of 1.2800 will lead to a larger sale of the pound with the release of at least a month in the area of 1.2723, where I recommend fixing the profit. In the case of GBP / USD growth in the first half of the day, short positions can be considered after the test of resistance 1.2861 or for a rebound from the maximum of 1.2924.

Indicator signals:

Moving Averages

Trade is conducted below the 30- and 50-day moving averages, which indicates a likely continued decline in the pound.

Bollinger bands

A break of the lower border of the Bollinger Bands indicator near 1.2789 will lead to the fall of the British pound.


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 -