GBP / USD: plan for the American session on February 27. The pound is growing, despite the overbought

To open long positions on GBP / USD you need:

The British pound rose in the morning, despite the fact that many technical indicators are in the overbought zone, which indicates the likely formation of a downward correction in the short term. At the moment, it is best to rely on new long positions after the breakdown and consolidation above the resistance of 1.3329, which opens up a real prospect of updating the maximum of 1.3386 and 1.3437, where I recommend fixing the profits. In the case of a decrease in the pound in the afternoon, the area of 1.3264 will be an acceptable level for opening long positions.

To open short positions on GBP / USD you need:

Sellers still hold the market below 1.3329 resistance, however, it is best to expect a larger decline in the pound after another unsuccessful attempt to consolidate above this range, which can lead to a larger downward correction in the area of 1.3264 and 1.3202, where I recommend fixing the profits. In case of further growth with the trend, consider short positions in GBP / USD is best to rebound from the highs of 1.3386 and 1.3437.

Indicator signals:

Moving Averages

Trade is conducted above the 30-day and 50-medium moving, which indicates the bullish nature of the market.

Bollinger bands

In the case of a downward correction, support will be provided by the average Bollinger Bands indicator around 1.3264.

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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
The material has been provided by InstaForex Company - www.instaforex.com

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