06.06.201908:18 Forex Analysis & Reviews: GBP/USD: plan for the European session on June 6. The pound was taken hostage by the US economy data

To open long positions on GBP/USD you need:

Yesterday, pound buyers attempted to continue growth after the release on data on the service sector and reached a resistance of 1.2744, to which I paid attention. At the moment, their task is to return and consolidate above the 1.2700 area, which will keep the upward potential in the pair and will lead to a repeated update of the high of 1.2744, where I recommend taking profits. In case of further decline, it is best to return to long positions from a low of 1.2650 or from a larger support of 1.2594.

To open short positions on GBP/USD you need:

Pound sellers will expect the formation of a false breakdown in the resistance area of 1.2700, which was formed yesterday after good answers on the state of the US economy. Only in such a scenario can we expect the pound to further decrease to the support area of 1.2650 and an update of the low of 1.2594, where I recommend taking profits. If the bulls manage to return to resistance at 1.2700 in the first half of the day, it is best to open short positions to rebound from resistance at 1.2744.

Indicator signals:

Moving averages

Trade is conducted below 30 and 50 moving averages, which indicates a return of bearish sentiment.

Bollinger bands

In the event that the pound further decreases, support will be provided by the lower limit of the indicator in the area of 1.2660. A break of the middle border in the 1.2700 area will return the demand for the British pound.

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