FX.co ★ Trading plan for the European session on February 8 EUR / USD and GBP / USD

EUR / USD

To open long positions on EURUSD, it is required:

It is best to open long positions for the euro after forming a false breakdown at 1.2250 with a confirmation of the divergence on the MACD indicator, which may bring the EUR / USD pair back to the resistance area level of 1.2301 and lead us to the renewal level of 1.2339. If a quick rebound from the level of 1.2250 in the morning does not happen, it's best to go back to the rebound from 1.2216 to buy the euro.

To open short positions on EURUSD, it is required:

The formation of a false breakout at 1.2301 could lead to a continuation of the downward trend for the euro in the morning to the support area of 1.2250. An anchoring below 1.2250 will push EUR / USD further down to the 1.2216 area, where it is recommended to lock in profits. With a growth option above 1.2301, selling the euro can be rebounded from 1.2339.

GBP / USD

To open long positions on GBP / USD, it is required:

Opening long positions on the pound is best after reducing and forming a false breakout in the area of support at 1.3874. Much will depend on the statements of the Bank of England and the decision on interest rates. In case of a breakout at the level of 1.3874, consider buying the GBP / USD pair at once to rebound from 1.3805. A break and consolidation above the level of 1.3928 will allow us to expect a correction in the pound to the area of 1.3988.

To open short positions on GBP / USD, yit is required:

Failure to fix at 1.3928 and return to this level, or break and consolidate below 1.3874, will be a good signal to increase short positions in the GBP / USD pair with the first goal of reducing to the area of 1.3805, where it is recommended to lock in profits. In case of an increase of the pound above the level of 1.3928 after the decision of the Bank of England, you can open short positions immediately to rebound from 1.3988.

Indicator description:

MA (moving average) 50 days - yellow

MA (moving average) 30 days - green

MACD: fast EMA 12, slow EMA 26, SMA 9

Bollinger Bands 20