FX.co ★ Trading plan for the European session on May 24 GBP/USD

To open long positions for GBP/USD, it is required:

A good signal to buy the pound will be formed after a decline to the support level of 1.3340, with the formation of a false breakdown in that area, or after a steadying at the level of resistance at 1.3389, with the exit beyond the 50-day moving average, which opens the way to the area of 1.3438 and 1.3476, where I recommend profit taking. In the event of a decline below 1.3340, buying the pound can be done on the rebound from 1.3306.

To open short positions for GBP/USD, it is required:

Failure to consolidate above 1.3389 will be the first signal to sell the GBP/USD in order to reduce and break the support of 1.3340, below which the pair can quickly fall to the area of Wednesday's lows of 1.3306, where I recommend profit taking. In case of growth above 1.3389, the pound can be sold on a rebound from 1.3438.

Indicator description

• Moving Average (average sliding) 50 days - yellow
• Moving Average (average sliding) 30 days - green
• MACD: fast EMA 12, slow EMA 26, SMA 9
• Bollinger Bands 20