Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

GBP / USD: plan for the American session on October 18. The lack of a solution for Brexit puts pressure on the pound

October 19, 2018 Analytics

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

There is no news on Brexit and, accordingly, there is no large buyer either, which did not allow us to consolidate above 1.3119 in the first half of the day. At the moment, it is best to rely on pound purchases after the formation of a false breakdown at the low of the day at 1.3075 or open long positions after updating the weekly support at 1.3032. The main task for the second half of the day will be the return and consolidation above the resistance of 1.3119, from where the maximum of 1.3152 and 1.3186, where I recommend fixing the profit.

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

As long as trading is conducted below the resistance level of 1.3119, the pressure on the pound will continue. The main goal of the sellers remains at least this week 1.3075, a breakthrough of which will lead to a larger sale of GBP / USD with a minimum of 1.3032 and 1.2982, where I recommend fixing the profits. At any time, the results of the next Brexit negotiations can be published, so that we do not forget to place stop orders, since the volatility of the pound may increase significantly. In the case of an upward correction to short positions, you can again return to the false breakdown from the resistance of 1.3152 or to the rebound from 1.3186.

Indicator signals:

Moving Averages

The pair has fixed below the moving average, which indicates the formation of a downtrend.

Bollinger bands

A break of the lower limit of the Bollinger Bands indicator around 1.3078 will lead to the sale of a pound. The upper limit around 1.3134 today stands in the form of resistance.

analytics5bc87a56b027e.png

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

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