GBP/USD: plan for the European session on February 6. The pound will remain under pressure until tomorrow's meeting of the Bank of England

To open long positions on GBP/USD you need:

Buyers of the British pound are not yet in the market. Only an update of yesterday's low in the support area of 1.2915-1.2910, with the formation of divergence on the MACD indicator, will lead to the formation of an upward correction with a large resistance test of 1.2995, where I recommend taking profits. In the absence of demand for a pound in the area of the levels mentioned above, it is best to consider new long positions for a rebound from the low of 1.2894 and 1.2833.

To open short positions on GBP/USD you need:

Yesterday's weak data on the service industry led to the increase of short positions in the pound by major players. At the moment, the main task is to return to the support level of 1.2947, which will lead to the formation of a new downward wave in GBP/USD with a test of the low of 1.2894 and 1.2833. However, attention should be paid to a possible divergence on the MACD indicator, which may limit the fall of the pound after it updates the previous day's low. In case of an upward correction in the first half of the day, I recommend returning to short positions immediately to the rebound from the resistance of 1.2995, where the 50-day moving average also passes.

Indicator signals:

Moving averages

Trade is conducted below the 30-day and 50-day moving, which indicates further formation of the downward movement.

Bollinger bands

In case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.2995 will be a good level for opening short positions in the pound.

Description of indicators

MA (moving average) 50 days - yellowMA (moving average) 30 days - greenMACD: fast EMA 12, slow EMA 26, SMA 9Bollinger Bands 20