GBP/USD: plan for the European session on March 20. UK inflation data can hurt the pound

To open long positions on GBP/USD you need:

Buyers of the pound need a confident breakdown and consolidation above the resistance of 1.3295, which can lead to increased demand and an update of monthly highs in the area of 1.3329 and 1.3375, where I recommend taking profits. An important report on UK inflation will be released in the morning, which could provide some support to buyers. In case of weak indicators, it is best to count on new purchases of the pound at the lower boundary of the side range in the area of 1.3220 and 1.3182.

To open short positions on GBP/USD you need:

Sellers of the pound, like yesterday, will attempt to form a false breakdown in the area of a resistance of 1.3295 and 1.3329, however, short positions can be opened immediately for a rebound in the area of a high of 1.3375. In case of weak inflation indicators, pressure on GBP/USD may increase, which will lead to a main target located in the support area of 1.3220 and 1.3182, where I recommend taking profits.

Indicator signals:

Moving averages

Trade is conducted in the area of 30-day and 50-day moving averages, which indicates the lateral nature of the market.

Bollinger bands

Bollinger Bands indicator volatility is very low, which does not provide any signal on entering the market.

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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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