18.08.202014:57 Forex Analysis & Reviews: GBP/USD: plan for the American session on August 18

To open long positions on GBPUSD, you need:

Buyers of the pound immediately achieved a breakdown of the resistance of 1.3139, but they could not form a good entry point for us. If you look at the 5-minute chart, you will see that after the breakout of 1.3139, the pair did not return to this level and did not make it a top-down test. But who was more attentive, remembered the level of 1.3181, from which I recommended in my morning review to open short positions immediately on the rebound, which led to the expected downward correction of 30 points within the day. Now, the goal of the bulls is to return to the level of 1.3181 again and fix on it, which forms a good entry point into long positions to strengthen the bullish trend. In this case, the targets will be the highs of 1.3238 and 1.3265, where I recommend fixing the profits. In the scenario of no support from major players and a decline in the pound in the afternoon, you can still open long positions on a rebound from support 1.3139 or from a larger minimum 1.3074, counting on a rebound of 30-40 points within the day.

To open short positions on GBPUSD, you need:

The bears' task for the second half of the day is to protect the resistance of 1.3181, and while trading will be conducted below this range, we can expect a decline to the support area of 1.3139, but, to be honest, the chances are quite small. Only a consolidation below 1.3139 will increase the pressure on the pound, which will lead to a larger downward movement to the support of 1.3074. If the bullish trend continues to develop in the second half of the day, then after the breakout of the resistance of 1.3181, I recommend not to rush to open short positions, but wait for the update of the maximum of 1.3228 and sell the pound from there for a rebound in the expectation of a correction of 30-40 points within the day. A larger resistance is seen in the area of 1.3268.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily averages, which indicates the development of a bull market.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger Bands

In case of a decline, the pair will be supported by the lower border of the channel at 1.3074, from where it is possible to open long positions immediately for a rebound.

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
• Non-profit speculative traders, such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet certain requirements.
• Long non-commercial positions represent the total long open position of non-commercial traders.
• Short non-commercial positions represent the total short open position of non-commercial traders.
• Total non-commercial net position is the difference between short and long positions of non-commercial traders.