GBP/USD: plan for the European session on May 29. Wanting to buy a pound less and less

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

After the recent growth of the pound against the background of Theresa May's statement about her resignation, to date, the British pound has lost all its positions and is on the verge of another major fall. Yesterday, buyers failed to break through the level of 1.2696, which will maintain a downward impulse. Today, in the first half of the day, a return and consolidation above the resistance of 1.2969 are required, which will allow us to expect a quick return to the maximum of 1.2744 and an update of the resistance of 1.2800, where I recommend fixing the profits. With a further decrease in the pound, you can open long positions on a false breakdown from the low of 1.2648 or on the rebound from the support of 1.2607.

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

As long as trading will be below the resistance of 1.2696, the pressure on the pound will remain, and the formation of a false breakdown there in the first half of the day will be a signal to sell the pound. The main task of the bears will be the support test of 1.2648, which may lead to an update of the minimum of 1.2607, where I recommend fixing the profits. If the growth scenario is above 1.2696 in the morning, you can return to the sales of the pound immediately on the rebound from the maximum of 1.2744.

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, which indicates a possible return to the market of large sellers.

Bollinger Bands

Volatility is very low, which does not give signals to enter the market.

TIiqB4yqPxz_CTkZ5s5T6lR03vKtXCIwtUOXjuJ5

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
The material has been provided by InstaForex Company - www.instaforex.com