10.12.201907:03 Forex Analysis & Reviews: GBP/USD: plan for the European session on December 10. Good UK GDP data could lead to a breakout of a high of 1.3173

To open long positions on GBP/USD you need:

Compared with the forecast for yesterday's US session, the pair's situation has not changed much. A small revision of the resistance level, which is now located at 1.3173, does not change the overall picture of the market. Bulls still need a breakout and consolidation above 1.3173, which can be achieved today after the release of good data on the state of the UK economy, especially after the report on GDP growth. Data better than economists' forecasts can return confidence in a faster economic recovery even amid the Brexit situation and will make it possible to break through the level of 1.3173, which will lead to a new rising wave in the area of highs 1.3227 and 1.3265, where I recommend profit taking. If the reports are significantly worse than the forecasts of economists, then the pressure on the pound could increase. In this case, opening new long positions is best only after the formation of a false breakout in the resistance area of 1.3130, or after updating the lows of 1.3084 and 1.3037.

To open short positions on GBP/USD you need:

An unsuccessful attempt to increase above the resistance of 1.3173 will be another signal for a possible correction of the pound in the short term, but this requires weak fundamental data. The first goal will be the level of 1.3130, consolidating below which will quickly pull down GBP/USD to a low of 1.3084, however, the main task of sellers will be to update support at 1.3037, where I recommend profit taking. But it's worthwhile to understand that even weak data on the state of the economy will not be able to spoil the market's expectations about the victory of the Conservative Party in the elections, which will maintain demand for the pound. A break of resistance at 1.3173 in the first half of the day will lead to an increase and update of the highs 1.3227 and 1.3265, from where you can open short positions immediately on the rebound.

Signals of indicators:

Moving averages

Trade is carried out in the region of 30 and 50 moving averages, which indicates another pause of buyers before the release of important data.

Bollinger bands

A break of the upper boundary of the indicator in the region of 1.3173 will lead to a more powerful bullish momentum. A break of the lower boundary at 1.3140 will raise the pressure on the pair.

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