GBP / USD pair: plan for the European session on October 9. Buyers formed the lower boundary of the rising channel.
To open long positions on the GBP / USD pair, you need:
Buying the pound can be considered today in the first half of the day after the formation of a false breakdown at 1.3085, based on continued growth and the update of yesterday’s high in the area of 1.3131, where taking profits are recommended. The main goal of buyers will be a new weekly maximum around 1.3165. In the case of a decline below the support level of 1.3085, it is best to consider new long positions to rebound from the 1.3032 low.
To open short positions on GBP / USD pair, you need:
It is best to open short positions on the pound after returning and consolidating below the support level of 1.3085, which will lead to the closing a number of stop-orders of buyers and re-lowering yesterday’s value to a minimum of 1.3032, where taking profits are recommended. In the event of further growth of the pound along the trend, it is possible to sell when a false breakdown is formed around 1.3131 or to rebound from a new high of 1.3165.
The price returned to the 30-day and 50-day moving average, which indicates continued growth of the pound while trading will be higher than the moving average.
The lower border of the Bollinger Bands, which is located in the area of 1.3046, will support the pound in the event of its decline, but the upper limit in the 1.3118 area will act as good resistance.
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