Trading plan for the European session on May 18 for the GBP/USD

To open long positions on GBP/USD, it is required:

The return and consolidation at resistance level 1.3529 will be a good signal to buy pound for the purpose of updating the level of 1.3565 and the upper border of the lateral channel 1.3599. Only its breakthrough will lead to a powerful upward impulse with a test of highs, around 1.3648. In case of a pound drop, purchases can be returned on a false sample from support 1.3485 or on a rebound from area 1.3454.

To open short positions on GBP/USD, it is required:

Failure to secure and return to level 1.3529 may lead to another downward wave in the pound, with a view to returning to support 1.3485 and updating the lower border of channel 1.3454, where it is recommended locking in profit. If the pound is rising in the morning, the short positions can be viewed after the resistance update at 1.3565 and on the rebound from 1.3599.

analytics5afe734b4c2b1.png

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

The material has been provided by InstaForex Company – www.instaforex.com