17.04.202006:05 Forex Analysis & Reviews: GBP/USD: plan for the European session on April 17. Pound sellers achieved their goal and retreated from weekly lows

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

I drew attention to the support test of 1.2402 in my review yesterday, which was the main goal of sellers this week. I also advised opening long positions from it, which along with good data on the Chinese economy made it possible for you to make a profit of more than 100 points. The current challenge for buyers of the British pound is to hold the 1.2493 level, and forming a false breakout on it in the first half of the day will be a great signal for opening new long positions in anticipation of continued upward correction to the high of 1.2573, where I recommend to take profit. The long-term goal of the bulls is still the 1.2632 area. If the demand for the pound slows down after the correction to the support of 1.2493, it is best to return to long positions only after a test of the low of 1.2402. Given that no important fundamental data on the UK economy is released today, buyers of the pound may try to take the market under their control.

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

Sellers of the pound perfectly coped with the task of testing support for 1.2402 yesterday, then they retreated from the market, which is clearly visible on the 5-minute chart. The goal for the first half of the day is to return and consolidate below the 1.2493 level, which will make it possible to form a new resistance of 1.2505 in the US session and will then be a signal to open short positions in the expectation of a repeated decline to the low of 1.2402, where I recommend taking profits. If the bulls are stronger and manage to maintain the optimism received after the data on the Chinese economy, it is best to return to short positions immediately on the rebound from the major resistance of 1.2573, where a large surge in volume will be recorded, also indicating the exit of speculative buyers from the market.

Signals of indicators:

Moving averages

Trading is conducted in the region of 30 and 50 moving average, which indicates a clear attempt by the bulls to seize the initiative.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differs from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger bands

A break of the upper border of the indicator at 1.2525 may lead to a new wave of growth for the pound. In the event of a decline, you can look at purchases on the test of the lower border of the indicator in the 1.2430 area.

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