GBP/USD: plan for the European session on April 12. The pound is still under pressure after yesterday's decision to postpone

To open long positions on GBP/USD you need:

I recall that during the voting it was decided that the UK could remain in the EU until October 31, 2019, which will increase the pressure on the pound in the medium term. Today, buyers need to form a false breakdown in the lower boundary of the side channel at 1.3052, which will be the first signal to buy based on a breakout and consolidation above the middle of channel 1.3088, which will lead to an update of the weekly high in the area of 1.3119, where I recommend to lock in the profit. In case the pound decreases below the level of 1.3052 in the first half of the day, it is best to consider new long positions to rebound from lows of 1.3021 and 1.2988.

To open short positions on GBP/USD you need:

Today, buyers will expect a return and consolidation below the support level of 1.3052, which will push the GBP/USD to larger lows in the area of 1.3021 and 1.2988, where I recommend taking profits. Failure to consolidate and form a false breakdown in the middle of the side channel of 1.3088 will also be a signal to open short positions in GBP/USD. When the growth scenario is above 1.3088 in the first half of the day, it is better to rely on selling the pound from the week's high around 1.3119.

Indicator signals:

Moving averages

Trade is conducted in the region of 30 and 50 moving averages, which indicates the formation of a side channel.

Bollinger bands

A break of the lower border of the Bollinger Bands indicator near 1.3047 will resume pressure on the pound. Growth will be limited to the upper region around 1.3090.

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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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