23.06.202015:31 Forex Analysis & Reviews: GBP/USD: plan for the American session on June 23

To open long positions on GBPUSD, you need:

Good data on business activity in the UK manufacturing sector and a practical return to the territory of 50 points of the index for the services sector became a driver for the strengthening of the British pound in the first half of the day. If you look at the 5-minute chart, you will see how the bears managed to hold the resistance of 1.2503 and formed a false breakout there, which was a signal to sell and reduce the pound to the support area of 1.2431, from which I recommended opening long positions in the morning. While the pound is locked in the channel, nothing has changed from a technical point of view. Let's see how the pair will behave after the data on the US economy. As long as buyers control the market above the support of 1.2431, we can count on the continued strengthening of the British pound. Another formation of a false breakout in this range after the release of several important data will be an additional impulse to open long positions to consolidate above the maximum of 1.2503. This scenario will open a direct path to the resistance levels of 1.2585 and 1.2676, where I recommend fixing the profits. If the pressure on the pound returns, then after the GBP/USD returns below the support of 1.2431, it is best to postpone the opening of new long positions to test the low of 1.2381 or to buy just on the rebound from the weekly low of 1.2334, where the downward trend reversed yesterday.

To open short positions on GBPUSD, you need:

Sellers of the pound acted quite aggressively after a false breakout in the resistance area of 1.2503. You do not need to retreat from this tactic in the afternoon. Sales may resume in the event of the release of positive reports on the US indices in the manufacturing sector. The more important goal of the bears is to fix below 1.2431, which will be a signal to open short positions in GBP/USD. Only this will lead to a repeated decrease in the pair and update the minimum of 1.2381, as well as to the support test of 1.2334, where I recommend fixing the profits. If the demand for the pound persists in the second half of the day, and the bulls break above the resistance of 1.2503, it is best to wait for the update of the larger weekly maximum of 1.2585 and sell the pound there in the expectation of a correction within the day of 30-40 points.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily averages, which indicates a slight advantage for buyers of the pound.

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

A break in the upper limit of the indicator around 1.2503 will strengthen the demand for the pound. A break in the lower border of the indicator at 1.2440 will lead to another wave of decline in 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