Trading plan for the European session on June 6 GBP / USD

Source: Forex Analysis

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

Buyers need to break through and consolidate above the resistance level of 1.3420 to maintain the upward trend but it is important to pay attention to the MACD indicator, since it can form a divergence, which will limit the upside potential. The main goal for long positions will be the new highs around the level of 1.3476. If the pound declines in the morning, you can count on support in the area of 1.3376 and buy the pound immediately for a rebound from 1.3336.

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

An unsuccessful break above the level of 1.3420 with a return to this level will be the first signal for the bears, which will try to quickly return the pair to the support area of 1.3376. However, the main target of the sellers will be the levels of 1.3336 and 1.3302, where it is recommended to lock in profits. In case of growth above the level of 1.3420 in the morning, selling the GBP / USD pair is best on the rebound from 1.3476.


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 –