GBP/USD: Plan for the U.S. session on November 1. The pound is trampling on the ground with no new Brexit landmarks
To open long positions on GBP/USD is required:
From a technical point of view, nothing has changed. Lack of Brexit news and reduced volatility make traders wait for the release of important statistics on the U.S. labor market. The first signal to buy will be a break-up and fixation above the resistance of 1.2971, which will lead to the demolition of sellers’ stop orders and further growth of the pair in the trend. Breakthrough of the high at 1.3017 opens a direct way to new resistance around 1.3074 and 1.3125, where I recommend to fix the profit. In case of good labor market indicators and decrease of GBP/USD, the best way to look at long positions is to look at a false break-down at the minimum of 1.2925 or to buy the pound directly at the rebound from the support of 1.2875.
To open short positions on GBP/USD is required:
Despite the growth of the pound, it will be possible to talk about a clear continuation of the bull market only after a breakthrough of monthly highs, which the bears will try to prevent. The formation of a false break-up in the resistance area of 1.2971 in the morning led to a slight rebound of the pair downwards, but sellers prefer to wait for the data to come out. Their main task is to break through the support at 1.2925, which will lead to a large downward correction of GBP/USD in the area of lows at 1.2875 and 1.2807, where I recommend to fix the profit. If the pound rises above the resistance at 1.2971, it is better to return to short positions after the renewal of last month’s high around 1.3017 or to sell at the rebound from the resistance at 1.3074.
More details about the forecast can be found in the video overview.
Trading is still above 30 and 50 daily averages, but it will be possible to talk about the continuation of growth only after the data.
In the event of a decline in the pound, support will be provided by the lower boundary of the indicator around 1.2925, a breakthrough of which will increase the pressure on the pair.
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