empty
13.03.2020 08:20 AM
GBP/USD: plan for the European session on March 13. Pound looks straight down. Breakout of 1.2520 will only strengthen the bearish trend

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

Buyers of the pound clearly retreated from the market after the Bank of England's recent decision to lower interest rates and provide significant support to the economy. A small rebound from the 1.2522 area, which I paid attention to yesterday in my review, led only to a correction, which is now limited to the resistance of 1.2605. Buyers will solely focus their attention on this level in the first half of the day. Its breaks with consolidation above will resume the pound's growth and will allow you to update the areas of 1.2686 and 1.2744, where I recommend taking profits, since this is where the moving averages pass. In the scenario of a further fall in GBP/USD, it is best to return to long positions on the test of the lows of 1.2417, 1.2385 and 1.2353, and the lower the better.

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

Sellers face a simpler task to break through and consolidate below the 1.2522 support, from which the pound bounced up yesterday after a major drop inside the day. This will allow us to continue the bearish trend and achieve the update of new lows in the area of 1.2417 and 1.2353, where I recommend taking profits. However, a better time to open short positions will be when a false breakout forms in the resistance area of 1.2605, while GBP/USD can immediately be sold on the rebound from the highs of 1.2686 and 1.2744. Given that important fundamental statistics on the UK economy are not released today, the volatility of the pound will also depend on news about the negotiations between the UK and the EU, which have taken a back seat to the threat of the spread of the coronavirus.

Signals of indicators:

Moving averages

Trading is conducted below 30 and 50 moving average, which indicates a continuation of the bearish trend.

Bollinger bands

In the event of a decline, support will be provided by the lower boundary of the indicator in the region of 1.2482. In case of an upward correction, growth will be limited in the region of the upper boundary in the area of 1.2686, from where you can sell the pound immediately for a rebound.

This image is no longer relevant

Description of indicators

  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
  • MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
  • Bollinger Bands (Bollinger Bands). Period 20
Miroslaw Bawulski,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD: Trading Plan for the U.S. Session on March 24th (Review of Morning Trades)

In my morning forecast, I highlighted the level of 1.2968 and planned to make trading decisions based on it. Let's look at the 5-minute chart and analyze what happened

Miroslaw Bawulski 16:05 2025-03-24 UTC+2

EUR/USD: Trading Plan for the U.S. Session on March 24th (Review of Morning Trades)

In my morning forecast, I highlighted the level of 1.0856 and planned to make trading decisions based on it. Let's take a look at the 5-minute chart and see what

Miroslaw Bawulski 16:01 2025-03-24 UTC+2

How to Trade the GBP/USD Pair on March 24? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of GBP/USD The GBP/USD pair continued its downward movement on Friday, which was fully justified by both the technical picture and the prevailing market

Paolo Greco 06:08 2025-03-24 UTC+2

How to Trade the EUR/USD Pair on March 24? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of EUR/USD The EUR/USD currency pair continued a sluggish downward movement on Friday. A few days earlier, the price had broken below the ascending

Paolo Greco 06:08 2025-03-24 UTC+2

GBP/USD: Trading Plan for the U.S. Session on March 21st (Review of Morning Trades)

In my morning forecast, I focused on the 1.2946 level and planned to make trading decisions from that point. Let's take a look at the 5-minute chart to see what

Miroslaw Bawulski 18:04 2025-03-21 UTC+2

EUR/USD: Trading Plan for the U.S. Session on March 21st (Review of Morning Trades)

In my morning forecast, I highlighted the 1.0856 level and planned to make trading decisions around it. Let's take a look at the 5-minute chart and see what happened

Miroslaw Bawulski 17:59 2025-03-21 UTC+2

How to Trade the GBP/USD Pair on March 21? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of GBP/USD The GBP/USD pair also showed a downward move on Thursday, but the pound rose steadily on Wednesday evening—unlike the EUR/USD. Time

Paolo Greco 05:56 2025-03-21 UTC+2

How to Trade the EUR/USD Pair on March 21? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of EUR/USD The EUR/USD currency pair fell on Thursday after the results of the Federal Reserve meeting were announced. At last, we've seen some

Paolo Greco 05:56 2025-03-21 UTC+2

Trading Recommendations and Analysis for GBP/USD on March 21 — The British Pound Continues to Mock

The GBP/USD currency pair continued trading on Thursday... It's hard to say which direction to go in. The uptrend remains intact, but the price broke below the lower boundary

Paolo Greco 03:03 2025-03-21 UTC+2

Trading Recommendations and Analysis for EUR/USD on March 21 — A Chance for the Dollar?

On Thursday, the EUR/USD currency pair continued to frustrate traders. We believe this is not the best time to trade in the Forex market. The technical picture for the euro

Paolo Greco 03:03 2025-03-21 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.