GBP / USD: plan for the European session on February 14. The pound remains under pressure on weak inflation data and uncertainties

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

Buyers yesterday managed to keep the pound in the support area of 1.2837, which holds hope for a larger upward correction. To do this, today in the first half of the day, a breakthrough and consolidation above the resistance of 1.2885 is required, which will strengthen the demand for GBP / USD and lead to an update of the maximum of the week around 1.2944, where I recommend fixing the profits. In the event of a breakout and decline below 1.2837, it is best to look at long positions at a rebound of a minimum of 1.2782 and 1.2728.

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

Forming a false breakdown in the resistance area of 1.2885 will be the first signal to open short positions in the pound in order to repeat the test and breakdown of the week minimum of 1.2837, below which the bears will return to the market, which will lead to an update of the area of 1.2782 and 1.2728, where I recommend fixing the profits. In the case of good news from Theresa May and Brexit, the demand for a pound may return. In this scenario, you can sell on a rebound from a maximum of 1.2944.

Indicator signals:

Moving Averages

Trade is conducted in the area of 30-day and 50-day moving, which indicates the lateral nature of the market with a slight advantage of sellers.

Bollinger bands

In the case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.2921 will limit the upward potential. It is best to return to long positions after the test of the lower limit in the area of 1.2815.

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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
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