GBP/USD: plan for the US session on May 2. The Bank of England left interest rates unchanged

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

The Bank of England's decision on interest rates led to a slight surge in market volatility, but the technical picture did not change compared to the morning forecast. At the moment, buyers of the pound need a return and consolidation above the resistance of 1.3057, which will return the demand and lead to a repeated test of a maximum of 1.3093 with its update in the area of 1.3129, where I recommend fixing the profits. With the scenario of further GBP/USD decline, it is best to return to long positions on a false breakdown in the area of 1.3018 or on a rebound from the low of 1.2983.

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

Bears have formed a false breakout in the resistance area of 1.3057, and while trading is conducted below this range, you can count on a 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. In the GBP/USD growth scenario above the resistance of 1.3057, it is best to consider short positions on the rebound from the high of 1.3093 and 1.3129.

Indicator signals:

Moving Averages

Trading is conducted in the region of 30 and 50 moving averages, which indicates the lateral nature of the market.

Bollinger bands

In the case of a decrease in the pound in the afternoon, support will necessarily provide the lower limit of the indicator in the region of 1.3018.

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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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