GBP / USD: plan for the European session on December 3. The pound continues to test the strength of support 1.2730

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

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

Buyers once again coped with the task of keeping the pair above 1.2730. At the moment, bulls need a breakthrough and consolidation above resistance 1.2804, which will lead to a larger upward correction and return the pair near the upper border of the side channel 1.2847, where I recommend taking profits. Also, you can look at long positions when forming a false breakdown in the area of intermediate support 1.2763. In the case of a large drop in the pound, purchases can be returned from the low of the month 1.2730 subject to the formation of a false breakdown or from the new levels 1.2663 and 1.2625.

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

The bears have to rely on a return under the support level of 1.2763, which will open a direct road to the region of the large level 1.2730 which has already been repeatedly tested by sellers of the pound. Its breakdown will lead to a rapid decline in GBP / USD with the updating of monthly lows in the area of 1.2663 and 1.2625, where I recommend taking profits. In the case of growth above 1.2804, in the first half of the day, it is best to return to sales of the pound to rebound from the upper limit of the side channel 1.2847.

Indicator signals:

Moving averages

Trade is conducted in the area of 30- and 50-day moving averages which indicates the lateral nature of the market.

Bollinger bands

A break of the upper border of the Bollinger Bands indicator in the area of 1.2782 will lead to further growth of the British pound. If the pair declines, support will be provided by the lower limit of the indicator in the area of 1.2730.

More details about the forecast can be found in the video review.analytics5c04d5155455b.png

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
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