Relevance up to 18:00 2020-05-19 UTC–5
To open long positions on GBPUSD, you need:
The growth of the British pound in the morning amid optimism experienced by traders was limited by a weak report on the labor market. Although the unemployment rate has fallen, this is a March figure that no one has taken into account for a long time. In the morning forecast, I paid attention to purchases after the breakdown and consolidation above the resistance of 1.2218, which happened. If you look closely at the 5-minute chart, you will see that after the breakout of the resistance of 1.2218, the pair returned to this level, the test of which was a good signal to open long positions in the expectation of continuing the upward movement. So far, the nearest target of the bulls is the resistance of 1.2265, the breakout of which will definitely lead the pound to new highs in the area of 1.2323 and 1.2370, where I recommend fixing the profits. In the scenario of a decline in GBP / USD in the afternoon, it is best to wait for a false breakdown to form in the support area of 1.2218, which has already worked out today, or to open long positions immediately to rebound from a minimum of 1.2170, where the moving averages go, which will be a more correct entry point. The lower border of the new ascending channel can be drawn by the bulls only after updating the minimum of 1.2122, from where today you can also buy for a rebound in the calculation of 30-40 points of intraday correction.
To open short positions on GBPUSD, you need:
Sellers of the pound need to return the pair to the level of 1.2218, and this should be done as quickly as possible. Only fixing below this range will increase the pressure on the pair, which will lead to an update of the minimum of 1.2170, and quite possibly to a test of a large support of 1.2122, where I recommend fixing profits since the bulls will try to form the lower border of a new ascending channel. An equally important task remains the protection of the resistance of 1.2265, where only the next formation of a false breakdown will be a signal to open short positions. With growth above this range, it is best to abandon sales to the large resistance test of 1.2323 or to rebound from a maximum of 1.2370.
Signals of indicators:
Trading is conducted above the 30 and 50 daily averages, which indicates the continuation of the upward correction.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.
A break in the upper limit of the indicator around 1.2265 will lead to a larger increase in the pound. If the pair declines, you can open long positions on a rebound from the lower border in the area of 1.2170.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence – moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Ruben Watson,
InstaForex Group © 2007-2020
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