27.07.202012:27 Forex Analysis & Reviews: GBP/USD: plan for the American session on July 27

To open long positions on GBPUSD you need:

In the first half of the day, I paid attention to purchases in the support area of 1.2815, which happened. If you look at the 5-minute chart, you will see how the bulls drew a false breakout in this range of 1.2815, thereby forming a good entry point into long positions in the continuation of the upward trend. Now the goal of the bulls is to break through the resistance of 1.2863, above which it was not possible to get out in the Asian session. Only fixing at this level will be an additional signal to open long positions in the expectation of continuing the growth of the pound to the highs of 1.2906 and 1.2961, where I recommend fixing the profits. If there is no activity at this level on the part of the bulls, it is better to postpone long positions at the current highs and again wait for a decline to the support area of 1.2815. However, it should be understood that this level has already worked itself out, so larger players will act when the GBP/USD falls to the area of the minimum of 1.2763, where the moving averages are currently held. From there, you can open long positions immediately for a rebound in the expectation of a correction of 30-40 points within the day.

To open short positions on GBPUSD, you need:

From a technical point of view, nothing has changed for sellers. An unsuccessful attempt to break below the support of 1.2815 left the market on the side of the bulls and according to the chart, the bears are not in a hurry to return to the market yet. The formation of a false breakout when trying to continue growth and break above the maximum of 1.2863, will be the first signal to open short positions against the trend. However, a more important task for the bears will be to regain support for 1.2815, which they failed to do in the first half of the day. Fixing below it will increase the pressure on the pair and lead to a downward correction to the area of the minimum of 1.2763, where I recommend fixing the profits. If sellers are not in a hurry to return to the market and miss the resistance of 1.2863 in the afternoon, and all this is going on, it is best to abandon short positions before the renewal of the high of 1.2906 or sell GBP/USD immediately on a rebound from resistance 1.2961 in the calculation for a correction of 30-40 points within the day. As soon as talk about Brexit starts again, the pressure on the pound will immediately return.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily averages, which indicates the bullish nature of the 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

A break in the upper limit of the indicator around 1.2863 will lead to an increase in the pound. In case of a decline, the lower border of the indicator around 1.2763 will provide support.

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 traders are speculators, 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.