17.10.201816:20 Forex Analysis & Reviews: GBP / USD: plan for the European session on October 17. UK Inflation data may support the pound

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

For continued growth, the British pound needs a good report on the consumer price index in the UK, which will lead to a breakthrough of the resistance level of 1.3189 and further strengthening of 1.3233 and 1.3291, where I recommend fixing the profits. The formation of a false breakdown at the intermediate support of 1.3158 will also be a signal to buy pounds. Otherwise, long positions can be opened for a rebound from the low of 1.3125 and 1.3083. The lower the better.

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

Failing to fix above resistance at 1.3189, along with weak data on inflation in the UK, could lead to a resumption of pressure on the GBP / USD pair, and a break of support at 1.3158 will bring large sellers back to the market, updating 1.3125 and 1.3083 lows, where I recommend fixing the profits. In the case of a pound rising above the resistance of 1.3189, short positions can be viewed on a false breakdown from the resistance of 1.3233 or a rebound from the high of 1.3291.

Indicator signals:

Moving Averages

Trade has moved one level from the 30-day and 50-day moving average, which indicates the lateral nature of the market.

Bollinger bands

Volatility is very low. A break of the lower limit of the Bollinger Bands indicator around 1.3158 will be a direct signal to open short positions in the pound. The upper limit is located in the area of resistance 1.3220, which will limit the upward potential on the pound.

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