24.10.201909:00 Forex Analysis & Reviews: GBP / USD: plan for the European session on October 24. The pound is waiting for the decision on postponement of the EU, on which the further direction of movement depends

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

Despite the uncertainty that is now observed in the market, buyers of the pound remains a high chance of buying. However, much will depend on the decision of the EU to grant an extension. If a delay of 1-2 weeks is a bullish signal, and a break of resistance of 1.2923 will lead to a larger upward movement to weekly highs of 1.3012 and to their renewal in the area of 1.3074, I recommend taking profit. But if the EU refuses to grant a respite for such a short period, this is a bearish signal. Therefore, in the case of a decline in GBP / USD, it is best to count on purchases after the formation of a false breakdown in the support area of 1.2842 or after a decline and test of large lows 1.2757 and 1.2664.

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

The sellers are still satisfied with the current Brexit news, but the EU is required to meet Boris Johnson and approve a short delay of 1-2 weeks. The main task for the first half of the day is to break the support of 1.2842, which will lead to the demolition of a number of stop orders and a further decline in GBP/USD to the area of lows 1.2757 and 1.2664, where I recommend taking profits. At the same time, when forming a false breakdown at 1.2923, you can also count on selling the pound, but do not forget to stop the orders, as any decision by the EU will lead to a sharp increase in volatility. In case of growth above 1.2923, the nearest large levels will be seen around the areas of 1.3074 and 1.3167.

Indicator signals:

Moving averages

Trading is conducted in the area of 30 and 50 moving averages, which indicates market uncertainty.

Bollinger bands

In case of a decline in the pair, a break of the lower boundary of the indicator in the area of 1.2855 will increase pressure on the pound while a break of the upper boundary in the area of 1.2935 will lead to a new upward wave.

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