GBP / USD plan for the American session on April 10. The pound rose on GDP data but the potential is limited by the situation
To open long positions on the GBP / USD pair, you need:
Pound buyers managed to return the pair to the resistance level of 1.3079. while the trade is conducted above this range, you can count on the continuation of the upward correction with a test of highs around 1.1319 and 1.1360, where I recommend fixing the profit. In case that the pair return under the support of 1.3079 or the appearance of bad news on Brexit, it is best to return to long positions on a false breakdown around the lower boundary of the side channel 1.3032 or on a rebound from the monthly minimum of 1.2988.
To open short positions on the GBP / USD pair, you need:
Given the uncertainty with Brexit and the likelihood of exit without an agreement, although small it is still existing, bears can return to the market after reducing to the support level of 1.3079. This will automatically result in closing long positions of buyers, recruited after good data on GDP. Moreover, it will lead to a decrease in GBP/USD to the area of the minimum at 1.3032 and 1.2988, where I recommend taking profits. Under the scenario of further growth of the pound, one can consider sales from the upper border of the side channel at 1.3119 or immediately on a rebound from the new resistance of 1.3160.
More in the video forecast for April 10
Trade is conducted in the region of 30 and 50 moving averages, which indicates the lateral nature of the market.
Under the scenario of a decline in the pound, support will be provided by the average Bollinger Bands indicator around 1.3065 and the lower border in the area 1.3030.
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 20The material has been provided by InstaForex Company - www.instaforex.com