empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

18.10.201914:00 Forex Analysis & Reviews: GBP/USD: plan for the American session on October 18th. The bulls returned to the level of 1.2916, but further movement depends on the vote in the British Parliament

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:

Buyers of the pound got close to the level of 1.2916, which I paid attention to in my morning forecast, but it was not possible to break above this range yet. Further movement will directly depend on the negotiations of Boris Johnson with the Labor and the Democratic Union Party of Great Britain. If Johnson enters support, demand for the pound will return, and a break and consolidation above the resistance of 1.2916 will lead the pair to new local highs around 1.2997, 1.3037 and 1.3074, where I recommend taking the profits. Any negative background will put pressure on GBP/USD, therefore, when reduced, only the formation of a false breakdown in the support area of 1.2833 will be a signal to buy the pound. If the pair falls below the support of 1.2833, long positions can be returned to the rebound from the lows of 1.2757 and 1.2664.

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

From a technical point of view, nothing has changed. Sellers need bad news on Brexit, and the formation of a false breakdown in the resistance area of 1.2916 will be an additional signal to sell the pound. However, the more important task of the bears today is to return and consolidate the pair below the support of 1.2833, which will push the pound to the lows of 1.2757 and 1.2664, where I recommend taking the profits. However, such a downward movement will only be possible if the Labor Party refuses to support the Brexit agreement, which will greatly complicate Boris Johnson's "life" before tomorrow's parliamentary vote. In the scenario of further growth of the pound above the resistance of 1.2916, one can look at short positions after testing the highs of 1.2997 and 1.3074.

Indicator signals:

Moving Averages

Trading is just above the 30 and 50 daily averages, but the upward potential of the pound is limited due to the lack of news.

Bollinger Bands

The growth of the pound is limited by the upper level of the indicator around 1.2895, a breakthrough of which may lead to a new upward wave.

Exchange Rates 18.10.2019 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
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off