03.08.202012:47 Forex Analysis & Reviews: GBP/USD: plan for the American session on August 3

To open long positions on GBPUSD, you need:

The morning data on manufacturing activity in the UK did not allow buyers of the pound to return the market under their control, even despite the fact that the data came out generally quite good. An unsuccessful attempt to break above 1.3100 formed a good entry point into short positions, which is clearly visible on the 5-minute chart. I paid attention to this probability in my morning forecast and recommended selling the pound. At the moment, the task of the bulls is to protect the support of 1.3023, but only the formation of a false breakout there will be a signal to open long positions on the pound in the hope of returning to the morning resistance of 1.3100. If there is no activity from the bulls at the level of 1.3023, it is best to postpone the opening of long positions until the update of the minimum of 1.2949 in the expectation of a correction of 30-40 points within the day. It is also an important task for buyers to return the resistance to 1.3100, since only above this level the bullish trend for the pound will return to normal and continue with a new force, opening the way to the highs of 1.3165 and 1.3228.

To open short positions on GBPUSD, you need:

The bears fully coped with their task and continued the downward correction of the pound. In the second half of the day, their goal is the support of 1.3023, since only a breakout and consolidation below this level will open the way to new lows in the area of 1.2040 and 1.2893, where I recommend fixing the profits. However, for such an active movement of the pound down, very good data on manufacturing activity in the US will be required. If the bulls try to regain control of the market, short positions can still be returned if a false breakout is formed in the resistance area of 1.3100 or sell the pound to rebound from the weekly high in the area of 1.3165 in the expectation of a correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is below the 30 and 50 daily averages, which indicates a further downward correction for 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

In case of growth, the upper limit of the indicator in the area of 1.3125 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 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.