16.12.201914:22 Forex Analysis & Reviews: GBP/USD: plan for the US session on December 16. The report on the service sector collapsed the British pound

To open long positions on GBPUSD, you need:

The British pound broke its growth and fell against the US dollar in the morning after a weak report on the services sector, which indicated its decline in November this year, confirming the low pace of UK economic growth. The bulls missed the level of 1.3378 in the first half of the day, which led to a repeated decline in the area of the minimum of 1.3316, from where I recommended opening long positions. At the moment, the task of buyers of the pound is to return to the resistance of 1.3378, which will increase the chance of re-growth and updating the highs of 1.3450 and 1.3523, where I recommend taking the profits. If the pressure on the pound persists further, and this will happen provided good data on the US manufacturing sector, it is best to consider new long positions after the test of the minimum of 1.3265 or buy immediately on the rebound from the support of 1.3218.

To open short positions on GBPUSD, you need:

The bears coped with the morning task and staged a sell-off of the pound below the level of 1.3378, which I paid attention to in my review. At the moment, a good signal to open short positions will be an unsuccessful return to the resistance of 1.3378, which may coincide with the release of good data on activity in the US manufacturing sector, which will give the pair a downward momentum and lead to an update of the support of 1.3316. The probability of further downward correction to the area of lows of 1.3265 and 1.3218, where I recommend taking the profits, will depend on this level. In the scenario of GBP/USD growth in the second half of the day above the resistance of 1.3378, you can look at short positions from the level of 1.3450 and slightly higher from the maximum of 1.3523.

Indicator signals:

Moving Averages

Trading is conducted in the area of 30 and 50 daily averages, which indicates the formation of a lateral nature of the market.

Bollinger Bands

Only a break of the lower border of the indicator around 1.3316 will increase the pressure on the pair. Growth may be limited by the upper level of the indicator at 1.3410.

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 26. SMA Period 9
• Bollinger Bands (Bollinger Bands). Period 20