GBP/USD: plan for the European session on April 5. A large lower border of the ascending channel is built on the pound
To open long positions on GBP/USD you need:
Yesterday, buyers of the pound enjoyed a support of 1.3072, which I paid attention to in my review. Now we see the formation of the lower boundary of a large ascending channel formed from the March 29 low. If it declines to the support area of 1.3072, you can look again at long positions in GBP/USD, but the main task will be to break through and consolidate above the resistance of 1.3122, which will lead to renewal of highs around 1.3160 and 1.3195, where I recommend taking profits. In case the pound declines below the level of 1.3072, you can buy to rebound from lows of 1.3030 and 1.2979.
To open short positions on GBP/USD you need:
Failure to consolidate above the resistance of 1.3122 will be a signal to sell the British pound, but the main task will be a decline and a test of support at 1.3072, a breakthrough of which will resume a larger downward wave in GBP/USD with updated lows at 1.3030 and 1.2979, where I recommend to take profits. In case the pound increases above a resistance of 1.3122 in the first half of the day, it is best to consider new short positions to rebound from highs of 1.3160 and 1.3195.
Trade is conducted below the 30-day and 50-day moving average, which creates a number of problems for buyers of the pound. A medium breaktrough will be an additional signal to buy.
In the scenario of the next wave of the pound's decline, support will be provided by the lower limit of the Bollinger Bands indicator near 1.3051. A break of the upper border of the indicator in the region of 1.3122 will increase the demand for the pound.
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