GBP/USD: plan for the European session on February 28. The growth potential of the pound remains, but is limited by a number
To open long positions on GBP/USD you need:
The option to continue the British pound's growth remains quite good, but this requires the completion of a number of divergences on various indicators, as well as a correction to the support area of 1.3266, where the formation of a false breakdown will be the first signal to buy GBP/USD. The main goal of the bulls is to break through and consolidate above the resistance of 1.3346, which will lead to the renewal of new monthly highs around 1.3386 and 1.3437, where I recommend taking profits. In case the pound sharply decreases, you can buy immediately on a rebound from a low of 1.3204.
To open short positions on GBP/USD you need:
Demand for the pound is declining, but to go against a strong uptrend is not quite the right decision. Sellers need to form a false breakdown in the area of resistance of 1.3346. Only after that will you be able to count on a larger downward correction in the pound to the support area of 1.3266 and 1.3204, where I recommend taking profits. In the scenario of further growth with the trend, you can open short positions from a high of 1.3386, and better from a larger area of 1.3437.
Trade is conducted above the 30-day and 50-day moving averages, which indicates further growth of the market.
The break of the upper border of the Bollinger Bands indicator near 1.3333 will lead to a new wave of growth for the pound.
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