20.02.202016:13 Forex Analysis & Reviews: GBP/USD: plan for the US session on February 20. The pound goes against all the rules. A good report on retail sales led to another decline

To open long positions on GBPUSD, you need:

Major sellers of the pound acted exactly according to yesterday's scenario and taking advantage of good news on the volume of retail sales in the UK today. They drop the GBP/USD pair to another monthly low. A small rebound up to 1.2930 served only as a good level for opening new short positions. At the moment, the bears rested on the support of 1.2851, around which trade is conducted. Several tests have only led to a small upward correction of the pair. So an important task for buyers in the second half of the day will be to return the resistance to 1.2884, which will lead to a more powerful upward momentum in the area of 1.2922 and 1.2967, where I recommend fixing the profits. In the scenario of a support breakout of 1.2851, it is best to return to long positions on the rebound from the lows of 1.2830 and 1.2799.

To open short positions on GBPUSD, you need:

The bears continued to push the pound down. Major players took advantage of the good news on the UK and retail sales, which allowed them to quickly gain large positions on the background of speculators' purchases, which led to a breakout of the support of 1.2890. Currently, trading is conducted in the support area of 1.2851, a repeated test of which will certainly lead to a new sale of GBP/USD in the area of the lows of 1.2830 and 1.2799, where I recommend fixing the profits. In the scenario of an upward correction in the second half of the day, you can return to short positions only on a false breakdown in the resistance area of 1.2884 or sell the pound immediately on a rebound from the maximum of 1.2922.

Signals of indicators:

Moving averages

Trading is below the 30 and 50 daily averages, which indicates a continuation of the bearish trend.

Bollinger Bands

In the case of an upward correction, the average border of the indicator around 1.2900 will act as a resistance.

Description of indicators

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