GBP/USD: plan for the European session on August 20. Pound buyers have serious problems with 1.2190

GBP/USD: plan for the European session on August 20. Pound buyers have serious problems with 1.2190

To open long positions on GBP/USD you need:

The British pound began to decline against the US dollar after yesterday’s unsuccessful attempt to overcome resistance at 1.2187. At the moment, the main task of the bulls will be to break and consolidate above the resistance of 1.2139, which will once again reach the high of 1.2187, where I recommend taking profits. If pressure on GBP/USD persists in the morning, it is best to open long positions provided that a false breakdown is formed in the support area of 1.2087, however, a low of 1.2040 will be a more acceptable level for purchases. To open short positions on GBP/USD you need:

Sellers need the formation of a false breakdown in the resistance area of 1.2139, which will increase the pressure on the pair and lead to the resumption of the bearish trend in the area of lows 1.2087 and 1.2040, where I recommend taking profit. If buyers are able to cope with a high of 1.2139 in the morning, then it is best to count on GBP/USD sales on a rebound from a resistance of 1.2187, or sell the pound from a larger monthly high of 1.2240. Signals of indicators: Moving averages Trading below 30 and 50 moving averages, which indicates the likelihood of returning pound sellers to the market. Bollinger bands A break of the lower border of the indicator at 1.2110 will increase pressure on the 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 

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