GBP/USD: plan for the American session on May 31. Pound updates monthly lows

To open long positions on GBP/USD, you need:

Problems with Brexit and the increase in the probability of the UK leaving the EU without an agreement led to a decrease in the British pound again, which indicates a continuation of the downward trend. However, the fall in GBP/USD in the first half of the day was restrained by the level of 1.2560, to which I paid attention in my morning review. At the moment, it is best to return to purchases after a repeated test and the formation of a false breakdown at a minimum of 1.2560 or to rebound from a larger level of 1.2500. The main task of the bulls will be to update the maximum of 1.2623 and consolidate on it.

To open short positions on GBP/USD, you need:

The bears reached the next support level of 1.2560, where the expected profit-taking began at the end of the month. At the moment, short positions can be returned after updating THE resistance of 1.2623, provided that a false breakdown is formed, or to rebound from a maximum of 1.2686. The main purpose of the bears will be a breakout and consolidation below 1.2559, which will keep the downward trend in pair and lead to a test of 1.2500.

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, which indicates a return to the market of sellers pound.

Bollinger Bands

The pound growth in the second half of the day will be limited by the upper limit of the indicator around 1.2625.

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

The material has been provided by InstaForex Company –

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Author: MOKAR

Mula berdagang dalam pasaran forex sejak tahun 2003. Manakala pasaran bursa saham tempatan dan global pada tahun 2018. Menjadikan trading online sebagai kerjaya sepenuh masa pada tahun 2019. Kerjaya sebelum ini adalah seorang salesman kereta. Berpengalaman dengan pelbagai teknik dan perguruan tetapi akhirnya sangat serasi dengan teknik FMCBR @ Fibo Musang melalui guruku Cikgu Baha & Cikgu Zul.

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