GBP / USD: plan for the European session on March 6. Time for a side channel

To open long positions on GBP / USD you need:

Yesterday's data on the services sector were ignored by the market, which led to a further decline in the pound. At the moment, a side channel is being formed, and long positions are best viewed under the condition of a false breakdown in the support area of 1.3109 - 1.3100. Otherwise, you can buy GBP / USD for a rebound from a minimum of 1.3049. The main task of the bulls will be a breakthrough and consolidation above the upper boundary of the side channel in the area of 1.3179, which will lead to a larger upward correction to the maximum of 1.3248, where I recommend fixing the profits.

To open short positions on GBP / USD you need:

Sellers have the opposite task. False breakdown around 1.3180 will be a signal to open short positions, but the main task will be fixing under the lower border of the side channel in the area of 1.3109, which will lead to a larger sale with updating the minimums of 1.3049 and 1.2973, where I recommend fixing the profit. With the growth scenario above the resistance of 1.3179, short positions can be safely opened from the high of 1.3248.

Indicator signals:

Moving Averages

Trade is conducted below the 30-day and 50-day moving, indicating a downward correction.

Bollinger bands

A break of the lower border of the Bollinger Bands indicator around 1.3109 will lead to a new wave of pound decline. Growth will be limited to the upper boundary of the indicator in the area of 1.3180.

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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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