GBP / USD: plan for the European session on October 4. The pound is falling amid certainty with Brexit
To open long positions on GBP / USD, you need:
Yesterday, British Prime Minister Theresa May once again called for support for her Brexit plan. While trading is conducted above the support level of 1.2926, buyers will be active, but the main task is to break down and consolidate above the resistance level of 1.2970, which will lead to an upward correction in the area of 1.3011, where I recommend fixing the profits. In the case of a decline below the level of 1.2926, the return to the market of buyers can be expected only after updating the minimums of 1.2897 and 1.2872.
To open short positions on GBP / USD, you need:
Pound sellers will expect a false breakdown and a return below the resistance level of 1.2970, which can lead to a larger downward trend with a break of 1.2929 support, below which the pound will fall to the minimum of 1.2897 and 1.2872, where I recommend fixing the profits. In the case of GBP / USD growth in the first half of the day above 1.2970, I recommend to take a look at short positions from the resistance level of 1.3011 or sell a pound to rebound from a maximum of 1.3036.
The price returned under the 30- and 50-average, which indicates the further formation of the downward trend. As long as trading is below average, the pressure on the pound will continue.
Support the pound, in the case of further decline, may have a lower limit of the Bollinger Bands in the region of 1.2907. Sellers will begin to show activity after the test of the middle of the channel in the region of 1.2958.
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