25.08.202013:15 Forex Analysis & Reviews: GBP/USD: plan for the American session on August 25

To open long positions on GBPUSD, you need:

Good fundamental retail sales data from British Industrialists pushed the pound above the resistance of 1.3122 and even formed a good entry point into long positions from there, which I described in more detail in my morning forecast. If you look at the 5-chart, you will see how the bulls broke above the level of 1.3122 and tested it from the top down, which was a signal to open long positions. Now, as long as the trade is above this range, you can count on the continued growth of the pound in the area of 1.3170, where I recommend fixing the profits. The level of 1.3218 will be a longer-term target. If the bulls miss the area of 1.3122 after good data on consumer sentiment in the US, I recommend leaving long positions and waiting for the decline of GBP/USD to the low of 1.3063, where you can open long positions immediately on the rebound. Larger support is seen at the monthly low around 1.3007.

To open short positions on GBPUSD, you need:

The bears missed the resistance of 1.3122, and now all they need to do is try to regain this level by the close of the day. In this scenario, a sell signal for the pound can be formed, however, before selling, be sure to wait for the return of GBP/USD at 1.3122 and test this area from the bottom up, which will form an entry point into short positions. The main calculation will be for a decline in the support area of 1.3063, where I recommend fixing the profits. Good data on the American economy, which is scheduled for release in the afternoon, will help to realize this scenario. In the scenario of further growth of the pair, I recommend considering new short positions only after updating the maximum of 1.3170 or immediately on the rebound from the larger resistance of 1.3218 in the calculation of correction of 20-30 points within the day.

Signals of indicators:

Moving averages

Trading is just above the 30 and 50 daily averages, which indicates another attempt by the bulls to return to 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

In case of a decline in the pound, the lower border of the indicator in the area of 1.3040 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.