GBP / USD: plan for the American session on October 4. Buyers are trying to reverse the downward trend.
To open long positions on GBP / USD, you need:
Pound buyers today managed to cling to the resistance level of 1.2970 and entrenched themselves on it, which holds hope for a continuation of the upward correction, which at any time could lead to a break in the downward trend. The main target for long positions in the second half of the day will be the resistance of 1.3022, where I recommend fixing the profits. In the event of a return of the pound under the support of 1.2970, you can rely on purchases again from the minimum of the week, 1.2926.
To open short positions on GBP / USD, you need:
Pound sellers need to build the upper limit of the downward price channel, which is viewed just around the level of 1.3012. Until then, while trading will be conducted below this range, there is no need to worry about changing the trend. The return of GBP / USD under the support level of 1.2970 will be a confirmation of the preservation of the bearish trend towards the support of 1.2926 and 1.2872, where I recommend fixing the profits. In the case of growth of the pound in the afternoon, you can immediately sell on the rebound from the resistance of 1.3022.
The pair is stuck in the region of 30- and 50-medium, which indicates a short-term confusion of the market with further direction. However, in general, the trend remains bearish.
The upper limit of the Bollinger Bands indicator in the area of 1.2998 has already fulfilled itself, not letting the pair go higher. Its breakdown will lead to a new wave of growth in the area of resistance 1.3022.
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