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19.10.201817:11 Forex Analysis & Reviews: GBP / USD: plan for the European session on October 19. The Brexit agreement may be postponed for another year

Long-term review

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

The pound fell after the unsuccessful Brexit talks, as well as the cancellation of the November meeting between representatives of the UK and the EU. Long positions today can only be returned if the support level of 1.3002 is updated with the formation of a divergence on the MACD indicator, which will lead to a sharp increase and closure of short positions in the pound. Otherwise, it is best to open long positions to rebound from the lows of 1.2962 and 1.2926. The main task of buyers will be the return and consolidation above the resistance of 1.3045, which will lead to a correction to the maximum area of 1.3082, where I recommend fixing the profits.

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

An unsuccessful consolidation above the resistance level of 1.3045 with a rebound from the 30-day moving average will be a good sell signal per pound based on the breakdown of 1.3002 support, which will lead to the continuation of the downward trend in GBP / USD with a test of 1.2962 and 1.2926 lows, where I recommend fixing the profits. In the case of growth above the resistance level of 1.3045 in the first half of the day, short positions can be opened immediately to rebound from a high of 1.3082, where the 50-day moving average is located.

Indicator signals:

Moving Averages

Trade is conducted under the 30-and 50-day average, which indicates a further decrease in the pound. In the case of an upward correction, the 30-day average will play the role of good resistance.

Bollinger bands

Support today may have the lower limit of the Bollinger Bands indicator around 1.2980, which will be a direct signal to the opening of long positions in the pound. In the case of an upward correction, the average border around 1.3045 will act as additional resistance.

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

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