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22.05.201909:40 Forex Analysis & Reviews: GBP/USD: plan for the European session on May 22. Theresa May's trick did not please the buyers of the pound

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

To open long positions on GBP/USD you need:

Yesterday, Theresa May announced that it was possible to hold a new referendum on Brexit, but on the condition that Parliament approves her agreement. This did not please the buyers of the pound, who quickly left the market. At present, it is best to return to long positions on a false breakdown in the support area of 1.2687 or to rebound from a larger level of 1.2614. The target of the bulls for today will be the resistance 1.2747, consolidating on which will lead to the formation of a large upward correction with the update of the highs of 1.2808 and 1.2858, where I recommend to take profits.

To open short positions on GBP/USD you need:

A breakthrough and consolidation below the support of 1.2687 will lead to a new wave of short positions in GBP/USD with a rise to the lows of 1.2614 and 1.2564, where I recommend taking profits. In case the pound grows, after the release of data on inflation in the UK, a better scenario would be to sell from a resistance of 1.2747, provided a false breakdown, or to rebound from a high of 1.2808, as it was yesterday, after Teresa May's speech.

Indicator signals:

Moving averages

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

Bollinger bands

A break of the lower boundary of the indicator around 1.2665 will be a signal to open short positions in the pound in the expectation of a continued decline. The upper limit in the 1.2747 area will act as resistance.

Exchange Rates 22.05.2019 analysis

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
Miroslaw Bawulski
Analytical expert of InstaForex
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