GBP / USD pair: plan for the American session on October 16. Buyers continue to build a new upward trend for the pound
To open long positions on the GBP / USD pair, you need:
The breakthrough of the resistance level at 1.3165, to which I paid attention in my morning review, led to a further increase in the pound. Now, testing of the support 1.3205 from top to bottom will be a good signal for the opening of new long positions with access to the maximum of last week in the area of 1.3253, where taking profits are recommended. In the case of a decrease in the pound in the afternoon below the support of 1.3205, you can buy to rebound from the area of 1.3171. The breakthrough of 1.3253 will lead to a new wave of growth of the GBP/USD pair in the area of resistance at 1.3291.
To open short positions on the GBP / USD pair, you need:
Sellers need to rely on a return below the support level of 1.3205, which will lead to a larger downward correction in the area of 1.3171, where taking profits are recommended. In the case of maintaining the uptrend in the second half of the day, for example, due to poor data on industrial production in the United States, it is best to consider short positions in the pound after testing last week’s high of 1.3253 or on the rebound from the resistance of 1.3291.
The pair has fixed above the moving average, and the 30-day average crosses upwards the 50-day average, which indicates the formation of a new uptrend.
The potential of the GBP/USD pair for a downward correction will be limited by the average line of the Bollinger Bands indicator around 1.3171.
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