FX.co ★ GBP/USD: plan for the US session on May 22. The pound is expected to continue to decline

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

Buyers showed themselves in the support area of 1.2614, which I drew attention to in my morning review, and now their goal is to return to the resistance level of 1.2680, on which a further upward correction will depend, the goal of which will be the highs of 1.2747 and 1.2808. In the scenario of a re-decline in the minimum area of 1.2614, it is best to open long positions from there, provided that a false breakdown is formed or to rebound from the minimum of 1.2564.

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

Bears continue to push the pound down after the recent statements by Theresa May. The formation of a false breakdown in the resistance area of 1.2680 will lead to a new wave of short positions in the pound and a decrease in the pair to the minimum area of 1.2614, the breakthrough of which will provide sellers with a way to the support area of 1.2564, where I recommend fixing the profits. With a growth scenario above 1.2680, it is best to return to short positions on a rebound from 1.2747.

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, indicating a bearish market.

Bollinger Bands

In the case of the pound growth, the upward trend will be limited by the middle of the indicator around 1.2680.

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