21.05.201908:24 Forex Analysis & Reviews: GBP/USD: plan for the European session on May 21. The pound is preparing for a new wave of decline

To open long positions on GBP/USD you need:

The speech of the governor of the Bank of England can return the pressure on the British pound in the first half of the day, as it will be a question of interest rates and inflation. At present, it is best to return to long positions only on a false breakdown in the support area of 1.2714 or on a rebound from a larger level of 1.2672. Today, the bulls' goal will be the resistance of 1.2757, consolidating on which will lead to the formation of a large upward correction with the update of highs of 1.2802 and 1.2858, where I recommend to lock in the profit.

To open short positions on GBP/USD you need:

Breakthrough and consolidation below a support of 1.2714, which the bears tried to do yesterday throughout the day, will lead to a new wave of short positions in GBP/USD with access to the lows of 1.2672 and 1.2614, where I recommend taking profits. In case the pound grows, after the Parliamentary hearings on inflation, a more optimal scenario would be selling from a resistance of 1.2757, provided a false breakdown occurs, or to rebound from a high of 1.2802.

Indicator signals:

Moving averages

Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.

Bollinger bands

Volatility is very low, which does not provide signals for entering the market.

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