GBP/USD: plan for the European session on May 1. The demand for the pound may remain, but a small correction to the bulls

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

After yesterday's strong growth of the pound, it is best to return to long positions today after the formation of a false breakdown in the support area of 1.3018, but larger players can go only after a deeper downward correction to the area of 1.2983, where you can immediately buy a rebound. The main task will be a breakthrough and consolidation above the resistance of 1.305 but in the first half of the day, there may be a divergence on the MACD indicator, which will limit the upward potential. The goal is a maximum of 1.3093, where I recommend fixing the profit.

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

The bears will expect unsuccessful consolidation in the first half of the day above the resistance of 1.3057 with confirmation of divergence on the MACD indicator, which will be the first signal to open short positions in order to return to the support area of 1.3018, the breakdown of which will lead to a larger downward correction to the minimum of 1.2983, where I recommend fixing the profits. When the GBP/USD growth scenario is above the resistance of 1.3057, it is best to consider short positions for a rebound from the maximum of 1.3093.

Indicator signals:

Moving Averages

Trading is above 30 and 50 moving averages, which indicates the bullish nature of the market.

Bollinger bands

In the case of a decrease in the pound, support may be provided by the lower limit of the indicator in the area of 1.3018, the impulse of which will increase the pressure on the pair.

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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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