GBP / USD: plan for the US session on November 5. UK service sector growth has slowed
To open long positions on GBP / USD, you need:
Weak data on the service sector in the UK, whose growth slowed down last month, led to a decrease in the pound in the first half of the day, but buyers managed to stay above the support level of 1.2969, which is a very good signal to continue buying the British pound. The main task for the second half of the day is the breakdown and consolidation above the resistance of 1.3027, which will lead to a larger upward impulse, with a test of highs around 1.3085 and 1.3145, where I recommend taking profits. In the case of a decrease in the pound under the support of 1.2969, it is possible to open long positions to rebound from the low of 1.2907.
To open short positions on GBP / USD, you need:
As in the first half of the day, the pound sellers need to form a false breakdown at 1.3027, which will lead to an increase in pressure and a decrease in the pair to the area of morning support 1.2969, a repeated test of which can derail the pound to the area of minimums 1.2907 and 1.2844, where I recommend fixing the profit. In the case of growth above 1.3027 in the second half of the day, short positions can be returned to the rebound from the maximum of 1.3085 and 1.3145.
Trade is conducted in the region of the 30- and 50-day average, which maintains the upward potential in the British pound.
A break of the upper border of the Bollinger Bands indicator around 1.3027 will be a signal to buy the pound, while a break of the lower border around 1.2951 will lead to a new wave of sales of GBP / USD.
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