GBP/USD: plan for the European session on July 9. The pound is waiting for a new wave of decline

To open long positions on GBP/USD you need:

Today, buyers of the pound need to stay above the lower boundary of the rising channel in the area of 1.2501, which was formed yesterday. As long as trading is conducted above support at 1.2501, we can expect the momentum for a correction to be maintained, the target of which will be a resistance of 1.2537. Consolidationabove this range will lead to an update of highs of 1.2585 and 1.2639, where I recommend to take profit. If the pressure on the pound continues, the breakout of the 1.2501 range will lead to updating last week's lows with the test of supports at 1.2471 and 1.2439, where you can open long positions immediately to rebound.

To open short positions on GBP/USD you need:

Bears will count on the continuation of the trend movement, and a retest of support for 1.2501 may lead to its breakdown, which will only raise pressure on the pound and pull it down to new lows around 1.2471 and 1.2439, where I recommend taking profits. In case buyers return to the market, the formation of a false breakdown in the area of 1.2537 will be a signal to open short positions. Otherwise, you can sell the pound to rebound from a high of 1.2585.

Indicator signals:

Moving averages

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

Bollinger bands

Volatility is very low, which does not provide signals for entering the market.

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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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