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20.03.201915:03 Forex Analysis & Reviews: GBP / USD plan for the American session on March 20. Inflation in the UK was ignored by traders

Long-term review
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 the GBP / USD pair, you need:

Despite good inflation data in the UK, pressure on the pound remains prior to tomorrow's important decision of the Bank of England on interest rates and the EU summit, which will discuss the issue related to Brexit. Buyers managed to return from the support level of 1.3220, to which I paid attention in my morning forecast. Now their main task will be a breakthrough and consolidation above the resistance of 1.3266, which will lead to a larger upward trend of the pound to the area of maximum at 1.3316 and 1.3375, where I recommend taking profits. In the event of a further decline in the pound and a break of support at 1.3220, it is best to rely on new purchases at the lower limit of the lateral range in the area of 1.3182 and 1.3131.

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

The bears tried to break below the support of 1.3220 in the first half of the day and formed a resistance level of 1.3266. As long as trading continues below this range, the pressure on the pound will continue, leading to a repeated attempt at the support test of 1.3220. Its breakdown will increase the pressure on the GBP/USD pair and the main task of sellers will be to update the lows around 1.3182 and 1.3131, where I recommend taking profits. In the case of the pound rising above the resistance of 1.3266, short positions can return to rebound from the highs of 1.3316 and 1.3375.

More in the video forecast for March 20

Indicator signals:

Moving averages

Trading is below 30 and 50 moving averages, which indicates the advantage of the pound sellers.

Bollinger bands

A breakthrough with the lower boundary of the Bollinger Bands indicator near the level of 1.3220 may increase the pressure on the pair.

Exchange Rates 20.03.2019 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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