06.08.202012:29 Forex Analysis & Reviews: GBP/USD: plan for the American session on August 6

To open long positions on GBPUSD, you need:

The British pound continued to rise against the US dollar after the Bank of England reassured traders with a statement that negative interest rates currently seem less effective than other measures. Although it was not possible to achieve the formation of a convenient entry point to the market, now the situation with what to do next is more or less outlined. The bulls have a clear task to protect the new support of 1.3143, and the next formation of a false breakout at this level will be an additional signal to open long positions in the expectation of continuing the upward trend. In this case, the nearest target of the bulls will be a maximum of 1.3228, where I recommend fixing the profits. The longer-term target remains the resistance of 1.3265. If the bears in the second half of the day pull the blanket to their side and return the pair to the support of 1.3143, then it is best not to rush to open long positions, but wait for the test of the minimum of 1.3059, where you can buy the pound immediately on the rebound in the expectation of a correction of 30-40 points within the day. Larger players may even retreat to the lower limit of the 1.2980 channel.

To open short positions on GBPUSD, you need:

Sellers continue to experience difficulties. Their main task for the second half of the day is to break through and consolidate below the support of 1.3143, which was formed recently. Only this scenario will create a good entry point into short positions and allow you to count on the return of GBP/USD to the support area of 1.3059, where I recommend fixing the profits. The lower border of the 1.2980 side channel remains the farthest target of the bears. If the bulls continue the upward trend in the pound, it is best to consider short positions after updating the maximum of 1.3228 or sell GBP/USD immediately on the rebound from the larger resistance of 1.3265 in the calculation of a correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily averages, which indicates further growth 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 falls, the lower border of the indicator around 1.3095 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 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.