GBP/USD: plan for the American session on November 7th. The Bank of England left the interest rate unchanged at 0.75%, but

Trading 07 nov 2019 Donner votre avis

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

The British pound resumed its fall after the Bank of England left the interest rate unchanged at 0.75%. However, not all members of the committee agreed with this decision. Some voted for a further rate cut, which led to a decline in the pound. At the moment, the pair has rushed to the support level of 1.2807, from which I recommend opening long positions only if a false breakdown is formed there. Buying GBP/USD on the rebound is best at a minimum of 1.2735. The task of buyers for the second half of the day will be a return to the resistance of 1.2838, which will limit the downward potential of the pound, again locking it in the side channel. In this scenario, we can expect a re-update of the maximum of 1.2874, where I recommend taking the profits.

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

Bears waited for the decision of the Bank of England and resumed sales, taking advantage of good prices after the morning upward correction. At the moment, the return of the pair under the support of 1.2838 only increased the pressure on the pair, but the main goal is to break and consolidate below the minimum of 1.2807, which will lead to a larger sell-off of GBP/USD with an update of the area of 1.2735, where I recommend taking the profits. Statements by Bank of England Governor Mark Carney could also push the pound even lower. In the scenario of growth and return of the pair to the resistance level of 1.2838 in the afternoon, it is best to consider new short positions on the rebound from the highs of 1.2874 and 1.2910.

Indicator signals:

Moving Averages

Trading is below the 30 and 50 daily averages, which indicates a further decline in the pound.

Bollinger Bands

The breakthrough of the lower border of the indicator in the area of 1.2835 only increased the pressure on the British pound.

analytics5dc40e7555df7.png

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 - www.instaforex.com

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