GBP/USD: plan for the European session on February 15. The pound remains weak amid uncertainty over Brexit

To open long positions on GBP/USD you need:

Buyers of the pound did not manage to offer anything to the market yesterday, and the breakthrough of several important supports only increased the pressure on the pair. At the moment, the bulls urgently need to return to the resistance of 1.2826, as only a consolidation above it will lead to a larger upward correction in the area of 1.2880 and 1.2944, where I recommend taking profit. In the event of poor retail statistics in the UK, the pressure on GBP/USD will return. In this scenario, you can look at long positions from the low of this week at 1.2769, provided that a divergence is formed on the MACD indicator, or you can buy the pound immediately on a rebound from the new low of 1.2723.

To open short positions on GBP/USD you need:

The formation of a false breakdown in the area of resistance of 1.2826 will be the first signal to open short positions in the pound with the aim of retesting and breaking the weekly low of 1.2769, below which the bears will return to the market, which will lead to an update of the area 1.2723 and 1.2672, where I recommend to take profit. However, before selling for a breakdown around 1.2769, it is necessary to eliminate the divergence on the MACD indicator. In the event of good news from Theresa May and on Brexit regarding the timing of the UK exit from the EU, demand for the pound could return. In this scenario, you can sell on a rebound from a high of 1.2880 or 1.2944.

Indicator signals:

Moving averages

Trade is conducted below the 30-day and 50-day moving, which indicates the bearish nature of the market.

Bollinger bands

Bollinger Bands indicator volatility is very low, which does not give signals on market entry.

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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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