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flag - GBP/USD: plan for the European session on May 17. Pound buyers are waiting for the right moment

Forex Analysis:::2019-05-17

GBP/USD: plan for the European session on May 17. Pound buyers are waiting for the right moment

To open long positions on GBP/USD you need:

While there are still differences within the British parties regarding Brexit, buyers of the pound will remain on the sidelines without taking any active steps. The best scenario for stopping the bearish trend today will be the test of the support level of 1.2769 with confirmation of the divergence on the MACD indicator, which is currently being formed. This will make it possible for you to expect a return above the 1.2805 range, from which we can expect more substantial demand for GBP/USD in the area of highs of 1.2858 and 1.2916, where I recommend taking profits. With scenarios for further reduction of the pair and the lack of rapid market movement up from the support of 1.2769, it is best to look at long positions for a rebound from the low of 1.2723 and 1.2627.

To open short positions on GBP/USD you need:

The lack of news on Brexit and differences between the UK parties continue to pull down the pound. The bearish trend continues, and today, the sellers' target will be a low of 1.2769, a breakthrough of which will lead to a larger decline in the pair to the support area of 1.2723 and 1.2672, where I recommend taking profits. However, before selling for a breakdown around 1.2769, one should pay attention to the bullish divergence of the MACD indicator, which can limit the downward potential. In case the pound grows in the first half of the day, short positions can be returned to a false breakdown in the resistance area of 1.2805 or consider short positions to rebound from a high of 1.2858.

Indicator signals:

Moving averages

Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.

Bollinger bands

In case the pound further declines, support will be provided by the lower limit of the indicator in the area of 1.2769.


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
Ruben Watson
Analyst InstaForex
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