10.02.202008:56 Forex Analysis & Reviews: GBP/USD: plan for the European session on February 10. The bulls will fight for the resistance of 1.2920. Fewer people are willing to sell the pound

To open long positions on GBPUSD, you need:

Friday's downward movement of the pound was based only on the sell-off that occurred after the release of the report on the state of the US labor market, but there was no support from major sellers, which led to a small upward correction today in the Asian session. At the moment, buyers of the pound are focused on the resistance of 1.2918, the return of which will lead to a larger upward correction in the area of the highs of 1.2996 and 1.2995, where I recommend taking the profits. Given that no important fundamental statistics are expected at the beginning of the week, attention will shift to news related to the EU-UK trade agreement. In the scenario of a decline in GBP/USD in the first half of the day, you can return to long positions after updating the minimum of 1.2867, preferably with confirmation of divergence on the MACD indicator, but I recommend buying the pound immediately for a rebound only from the lows of 1.2830 and 1.2799.

To open short positions on GBPUSD, you need:

Sellers try their best to show that the market is under their control, but be very careful when opening short positions, especially when breaking lows. Only an unsuccessful attempt to consolidate above 1.2918 and the formation of a false breakdown at this level will signal the opening of short positions in the continuation of the trend, the purpose of which will be the test of the minimum of 1.2867, where I recommend fixing the profits. If the bulls are stronger at the level of 1.2918, then it is best to postpone short positions until the highs of 1.2956 and 1.2995 are updated, where I recommend taking the profits.

Signals of indicators:

Moving averages

Trading is conducted below the 30 and 50 moving averages, which indicates another predominance of the pound sellers in the market.

Bollinger Bands

If the pound rises in the first half of the day, the upper limit of the indicator around 1.2950 will act as a resistance. Support will be provided by the lower border of the indicator in the area of 1.2867.

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