16.03.202007:59 Forex Analysis & Reviews: GBP/USD: plan for the European session on March 16. Pound continues to fly into the abyss of last year's low. Fed decision to cut rates didn't help

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

The spread of the coronavirus and trade disputes with the EU only increase the pressure on the British pound, which, after the Bank of England lowered interest rates last week, continues to fly to the lows of 2019. At the moment, buyers can only expect to consolidate above the resistance of 1.2353, which will only lead to a small upward trend in the resistance area of 1.2417, where I recommend taking profits, although the longer-term goal of the bulls will be the resistance 1.2514. An equally important task will be to protect the lower boundary of the 1.2270 side channel. I recommend opening long positions from it only if a false breakout is formed, since trading against the trend is not the right decision. If this area breaks through, you can only count on rebounds from the lows of 1.2197, 1.2150 and 1.2112, and then by no more than 30-40 points.

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

Bears will try to maintain the trend in the pair, and the formation of a false breakout in the 1.2353 area will be the first signal to open new short positions in the expectation of a decline and a test of the low of 1.2270. A breakdown of this range will easily push GBP/USD to the new areas of 1.2197 and 1.2150, and the further goal of sellers will be support for 1.2112, where I recommend taking profits. If something goes wrong with the bears' plan today, only the 1.2417 resistance test will be a new signal to open short positions. Otherwise, you can sell immediately for a rebound from the highs of 1.2514 and 1.2605, where the moving averages also pass.

Indicator signals:

Moving averages

Trading is conducted below 30 and 50 moving averages, which indicates the continuation of the bearish trend.

Bollinger Bands

In case of a decline, the lower boundary of the indicator around 1.2197 will provide support. In case of an upward correction, growth will be limited in the area of the average boundary at 1.2417, from where you can sell the pound immediately on the rebound.

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