04.09.202014:08 Forex Analysis & Reviews: GBP/USD: plan for the American session on September 4

To open long positions on GBPUSD, you need to:

Buyers of the pound failed again to get above the resistance of 1.3315, which led to the formation of a signal to sell the pound. Bears quickly returned GBP/USD to the support area of 1.3243, leaving everything in its place before the release of important fundamental data. The 5-minute chart clearly shows the entry into short positions, which I paid attention to in my morning forecast. From a technical perspective, nothing has changed. Buyers of the pound will continue to protect the support of 1.3243, however, it will not be so easy to do this. If the pair falls again to this range, it is best to open long positions after a false breakout. However, I recommend buying GBP/USD immediately for a rebound from the minimum of 1.3165, based on a correction of 30-40 points within the day. An equally important task for the bulls will be to break through and consolidate above the resistance of 1.3315, where the moving averages also pass. This will strengthen the demand for the pound and lead to a larger upward correction to the resistance area of 1.3378, where I recommend fixing the profits.

To open short positions on GBPUSD, you need to:

The bears need to break below the support of 1.3243, which they failed to do yesterday afternoon. Most likely, if the pair falls again to this level, this range will be broken. The test from the bottom up on the volume forms a signal to open short positions on the pound in the expectation of its further decline to the area of the minimum of 1.3165, where I recommend fixing the profits. The support of 1.3115 will be a longer-term goal, however, it will only be achievable after a more than positive Nonfarm Employment Change report for the US. In case of repeated growth of the pair in the afternoon back to the resistance area of 1.3315, I do not recommend opening short positions from it. It is better to postpone sales until the test of a larger maximum of 1.3378, based on a correction of 20-30 points within the day.

Signals of indicators:

Moving averages

Trading is conducted below the 30 and 50 daily averages, which indicates the continuation of a downward correction for the pair.

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

Bollinger Bands

A break in the upper limit of the indicator around 1.3310 will lead to a new wave of growth of the pound. A break in the lower border of the indicator at 1.3255 will increase the pressure on the pair.

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 the short and long positions of non-commercial traders.