GBP/USD: plan for the European session on May 2. The pound fell after Powell's speech, but a return to 1.3060 will return

To open long positions on GBP/USD you need:

The upward trend in the pound ended after the press conference of the Fed chairman, during which positive moments in the US economy were noted. At the moment, the pound buyers need to return and consolidate above the resistance of 1.3057, which will return demand and lead to a repeated test of a high of 1.3093 with its update in the area of 1.3129, where I recommend taking profits. In case the GBP/USD further declines, it is best to return to long positions on a false breakdown in the area of 1.3018 or on a rebound from a low of 1.2983.

To open short positions on GBP / USD you need:

Bears will count on an unsuccessful consolidation above the resistance of 1.3057 in the first half of the day, which will be the first signal to open short positions in order to return to the support area of 1.3018, breaking down will lead to a larger downward correction to a low of 1.2983, where I recommend to lock in profits. When the GBP/USD growth scenario is above the resistance of 1.3057, short positions are best seen as a rebound from the highs of 1.3093 and 1.3129.

Indicator signals:

Moving averages

Trade is conducted in the region of 30 and 50 moving averages, which indicates market uncertainty.

Bollinger bands

In case the pound increases, the upper limit of the indicator will be in the area of 1.3093.

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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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