GBP/USD: plan for the European session on March 4. The pressure on the pound may continue

To open long positions on GBP/USD you need:

Growth last week following the news on Brexit and the likely extension of the UK's exit from the EU has ended. Now buyers need more solid guidelines. From a technical point of view, only the formation of a false breakdown in the support area of 1.3204 will lead to an increase in the pound. However, it is better to open larger long positions on the rebound from a low of 1.3144. The main task of the bulls will be to break and consolidate above the resistance of 1.3276, which will lead the pound to new highs in the area of 1.3346 and 1.3386.

To open short positions on GBP/USD it is required:

The downward correction of the pound is coming to an end. Therefore, it is best to look for new long positions after rising to large resistance levels. One of them is the area of 1.3276, an unsuccessful consolidation above which will be an additional signal to open short positions in order to test the lows of 1.3204 and 1.3144, where I recommend taking profit. In case of growth in the first half of the day above the high of 1.3276, short positions can be returned to the rebound of resistance at 1.3346. The main goal of the bears at the beginning of the week will be the breakdown of support at 1.3204, which will only increase the pressure on the pair.

Indicator signals:

Moving averages

Trading is below 30-day and 50-day moving averages, indicating a possible downward correction.

Bollinger Bands

Breakthrough of the lower border of the Bollinger Bands indicator in the area of 1.3200 will lead to a new wave of the pound's decline.

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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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