GBP/USD: plan for the European session on November 18. Weak US economy data supported the pound late last week

To open long positions on GBP/USD you need:

A weak report on US industrial production led to a breakthrough of the upper boundary of the new side channel and a new wave of pound growth against the US dollar. At the moment, an important task of buyers is to protect the level of 1.2909, since the formation of a false breakout on it can lead to continued growth of GBP/USD with an update of the high of 1.2938. However, consolidation above this range will allow us to expect a further upward trend of the pound to the area of 1.2966, where I recommend profit taking. In the absence of active growth from intermediate support of 1.2909, and this option is most likely, it is best to postpone long positions to the test of a larger range 1.2869-60.

To open short positions on GBP/USD you need:

Sellers will concentrate on returning the pound to the support level of 1.2909, and the absence of important fundamental statistics at the beginning of this week will do them good. Consolidation below 1.2909 will push the pair to a larger area of 1.2870-65, where I recommend profit taking. If the bulls try to continue the upward correction at the beginning of this week, then it is best to count on short positions after updating the high of 1.2966, or immediately sell GBP/USD for a rebound from a larger resistance of 1.3017. Any news on the UK elections or the publication of opinion polls will affect the pound's volatility, however, counting on the continuation of the bullish momentum will not be entirely correct.

Signals of indicators:

Moving averages

Trading is above 30 and 50 moving averages, which indicates continued growth of the pound in the short term.

Bollinger bands

The upward movement will be limited by the upper level of the indicator at 1.2938, from where it is possible to open short positions after the formation of a false breakout. In case the pound declines, support will be provided by the lower boundary of the indicator in the area of 1.2869, where today you can see the purchase of the pound just on the rebound.

Description of indicators