12.02.201909:24 Forex Analysis & Reviews: GBP/USD: plan for the European session on February 12. Weak UK economic data scares buyers of the pound

To open long positions on GBP/USD you need:

Yesterday's series of weak data led to the formation of a new downward wave in the pound. At the moment, buyers can only count on the formation of a divergence in the area of a low of 1.2833, however, the main task will be to return and consolidate above the resistance of 1.1284, which will serve as a powerful impetus for the upward correction to a high of 1.2932, where I recommend taking profits. In the absence of demand in the area of 1.2833, long positions in GBP/USD are best seen at updating the lows of 1.2782 and 1.2728.

To open short positions on GBP/USD you need:

Today, sellers of the pound will count on the negative tone of Bank of England Governor Mark Carney, whose speech is scheduled for the day. This will increase the pressure on the pound and lead to a breakthrough of support at 1.2833, from which the GBP/USD will fall further down to the lows of 1.2782 and 1.2728, where I recommend taking profits. In case of an upward correction in the first half of the day, you can take a closer look at short positions if a false breakdown is formed in the resistance area of 1.2884 or at a rebound from the high of 1.2932.

Indicator signals:

Moving averages

Trading is below the 30-day and 50-day moving averages, indicating a downward movement of the British pound.

Bollinger bands

In case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.2903 will limit the pound's growth, but its breakdown can lead to a large prolonged increase. A break of the lower border in the area of 1.2833 will lead to selling the 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