20.11.201914:36 Forex Analysis & Reviews: GBP/USD: plan for the American session on November 20th. Bears are trying to gain a foothold below the support of 1.2900

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

In the first half of the day, sellers of the British pound took advantage of negative news related to the US-China trade agreement and tried to break below the support of 1.2900, but buyers are still desperately fighting for this level. Given that there was no active upward movement from this range after the formation of a false breakdown, I recommend to postpone new purchases of GBP/USD until the update of the larger lows of 1.2869 and 1.2836. The main objective of the bulls remains the resistance of 1.2934, as only a return to it will lead to the formation of a new upward trend in the area of the highs of 1.2966 and 1.3017, where I recommend fixing the profits. In the afternoon, the focus will be shifted to the Fed minutes, so it is possible to put pressure on the US dollar and the strengthening of the pound closer to the middle of the North American session.

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

Sellers coped with the task for the first half of the day and tried to gain a foothold below the support of 1.2900, but the resistance of the bulls and the lack of fundamental statistics do not allow to form a larger downward trend. The more there is no upward movement from the level of 1.2900, the higher the probability that the pound will continue to decline. Fixing below the level of 1.2900 in the second half of the day may lead to a larger downward correction in the support area of 1.2869 and 1.2836, where I recommend taking the profits. However, a more powerful downward movement will depend on the Federal Reserve minutes and the situation with the future of US interest rates. In the scenario of an upward correction of GBP/USD, it is best to consider short positions after the formation of a false breakdown in the resistance area of 1.2934 or sell for a rebound from the maximum of 1.2966.

Indicator signals:

Moving Averages

Trading is below the 30 and 50 day averages, which indicates a possible further decline in the pound in the short term.

Bollinger Bands

If the pound rises, the upward correction will be limited to the upper level of the indicator around 1.2935.

Description of indicators

• Moving average (moving average determines the current trend by smoothing volatility and noise). Period 50. The chart is marked in yellow.
• Moving average (moving average determines the current trend by smoothing volatility and noise). Period 30. The chart is marked in green.
• MACD indicator (Moving Average Convergence/Divergence-convergence/divergence of moving averages) - EMA period 12. Slow EMA period to 26. SMA period 9
• Bollinger Bands (Bollinger Bands). Period 20