FX.co ★ GBP / USD: plan for the European session on September 20. Inflation data did not help the pound much

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

Yesterday's rise in the pound in the first half of the day on good inflation data led only to profit-taking from large sellers, which limited the upside potential. For today, consider long positions in GBP / USD best after breaking through the resistance level of 1.3170, above which you can wait for the continuation of the upward trend with the repeated update of the week's high at 1.3214 and further exit at the resistance level of 1.3263, where I recommend fixing the profit. If the pound is lowered in the morning, only a false breakout in the support area of 1.3119 will signal a pound purchase. Otherwise, you can open long positions at once to rebound from 1.3057.

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

The formation of a false breakdown at 1.3170 will be another confirmation of the fact that in the pound, there is a downward movement. The main task of sellers for the first half of the day will be the consolidation below the support level of 1.3119, which will lead to a correction in the area of 1.3057 and 1.2981, where I recommend fixing the profits. In the case of growth above resistance of 1.3170, it is best to return to pound sales after the test of levels of 1.3214 and 1.3263.

Indicator signals:

Moving Averages

The 30-day moving average is on par with the 50-day average, which indicates the lateral nature of the market.

The channels are narrowing, which indicates a decrease in the volatility of the market before a possible change in the uptrend.

Description of indicators

MA (average sliding) 50 days - yellow

MA (average sliding) 30 days - green

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

Bollinger Bands 20