23.07.202014:32 Forex Analysis & Reviews: GBP/USD: plan for the American session on July 23

To open long positions on GBPUSD, you need:

In the first half of the day, buyers of the pound rebuffed sellers, starting to actively act in the support area of 1.2701, from where I recommended opening long positions. If you look at the 5-minute chart, you will see how the formation of a false breakout in the support area of 1.2701 led to the formation of a good entry point into the market further down the trend. However, it was not possible to wait for the pair to return to weekly highs, and after moving up about 30 points, the bulls stopped. At the moment, we see how the second test of support for 1.2701 is taking place, and apparently no one is going to rush to return to the market at this level. If this range is broken, it is best to postpone long positions until the low of 1.2645 is updated, counting on a rebound of 30-40 points within the day. Also, larger purchases can be considered when the pound collapses to the area of 1.2585. An equally important task for the bulls will be to protect the support of 1.2701, since only in this scenario can we expect a repeat of the upward trend of GBP/USD to the maximum area of 1.2763, where I recommend fixing the profits.

To open short positions on GBPUSD, you need:

Sellers continue to actively fight for support for 1.2701, and its repeated test indicates clear intentions to continue the downward correction that was attempted yesterday. A breakout and consolidation below the level of 1.2701, with a test of it from the bottom up, forms a good signal to open short positions in the expectation of a decrease to the minimum of 1.2645, where I recommend fixing the profits. The longer-term goal remains the area of 1.2585. If the bulls hold the area of 1.2701, it is best to postpone sales until the update of this week's maximum in the area of 1.2763 in the expectation of a correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is conducted just below the 30 and 50 daily averages, which indicates an active position of sellers 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

If the pair grows in the second half of the day, the upper limit of the indicator in the area of 1.2750 will act as a resistance.

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.