FX.co ★ GBP/USD: plan for the European session on February 11. Pressure on the pound may continue against the background of an unsuccessful meeting between Theresa May and the EU representatives

To open long positions on GBP/USD you need:

Given the futility of the meeting, which was held last week between British Prime Minister Theresa May and EU representatives, the pressure on the pound might continue. At the moment, buyers need to form a false breakdown in the support area of 1.2922, which will be the first signal to open long positions for continued growth in the area of a high of 1.2974, fixing above which will lead to a number of purchases with a test of resistance of 1.3027 and 1.3099, where I recommend to fix profits. In the event of a decline below the support of 1.2922, it is best to return to long positions on a rebound from the low of 1.2884, where buyers will try to build the lower limit of the new upward price channel.

To open short positions on GBP/USD you need:

A number of important fundamental statistics on the UK economy will be released today. Weakly expected indicators of GDP growth and industrial output are expected, which may form a new pressure on the pound. Sellers are required to return to the support level of 1.2922, which will lead to a larger sale of GBP/USD with a low test of 1.2884 and 1.2852, where I recommend taking profits. In case of a further upward correction, you can take a closer look at short positions in the false breakdown around 1.2974 or sell the pound to rebound from a high of 1.3027.

Indicator signals:

Moving averages

Trade is conducted in the area of 30-day and 50-day moving, which indicates some market uncertainty with the further direction.

Bollinger bands

In case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.2965 will limit the growth of the pound, but its breakdown can lead to a large prolonged growth. A break of the lower border in the 1.2920 area will lead to a sale of GBP/USD.

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