GBP/USD: plan for the US session on May 16. The pound continues to move down, forming more bullish divergences

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

The pound continued to decline in the first half of the day, however, bullish divergences on the MACD indicator continue to form, which may lead to the end of the intraday downward trend at any time. The task of the bulls in the afternoon will be to return to the resistance level of 1.2812, which will lead to the closure of a number of short positions and a larger upward correction in the maximum area of 1.2877, where I recommend fixing the profits. In the scenario of further decline of GBP/USD on the trend, it is best to look at long positions on the rebound from the minimum of 1.2769.

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

Bears have coped with the task of securing below the level of 1.2812, and while trading is conducted under this range, the pressure on the pound will remain. The main goal of sellers for the second half of the day is a minimum of 1.2769, where I recommend fixing the profit. In the scenario of a return to the resistance of 1.2812, it is best to consider new short positions for a rebound from the maximum of 1.2877.

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.

Bollinger Bands

In the case of the pound growth in the second half of the day, the upper limit of the indicator in the area of 1.2865 will limit the upward movement.

qY1fU7hTzppvXWABf__0ChP76GRkrdfgu2prM50Y

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