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12.12.2018 03:59 PM
GBP / USD pair: plan for the US session on December 12. Pound may increase as Brexit news arrives

To open long positions on GBP / USD pair, you need:

The formation of a false breakdown at the support level of 1.2482 happened, which I drew attention in my morning forecast that led the GBP / USD to the area of large resistance 1.2534. For the second half of the day, the main task of buyers will be a breakthrough and consolidation above this resistance, which will lead to a large upward correction to the highs of 1.2580 and 1.2626, where I recommend taking profits. In the case of a repeated decline of the pound to the support area of 1.2482, a breakdown may occur. In this scenario, it is best to consider long positions after testing the lows around 1.2454, 1.2429 and 1.2405.

To open short positions on the GBP / USD pair, you need:

So far, sellers have managed to form a false breakdown at the resistance level of 1.2534, however, a major decline in the pound did not occur. As long as the trade is below this range, the pressure on GBP / USD will continue. A repeated decline in the support area of 1.2482 may lead to a larger sale of the British pound with updated lows around 1.2454 and 1.2429, where I recommend taking profits. The main weekly target will be the area 1.2405. In the case of a larger upward correction and a breakthrough resistance of 1.2534. But for the time being all this goes, to short positions you can look at the rebound from the maximum of 1.2580 and 1.2626.

Indicator signals:

Moving averages

Trade is conducted under the 30- and 50-day moving averages, which indicates a continued decline in the pound.

Bollinger bands

In the case of a decrease in the pound in the afternoon, long positions can be considered immediately to rebound from the lower limit of the Bollinger Bands indicator around 1.2482, which acts as support.

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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

Miroslaw Bawulski,
Analytical expert of InstaForex
© 2007-2024
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