27.08.202013:38 Forex Analysis & Reviews: GBP/USD: plan for the American session on August 27

To open long positions on GBPUSD, you need:

In the first half of the day, I paid attention to the level of 1.3218, and to the opening of short positions under the condition of a false breakout, which happened. Let's figure it out. If you look at the 5-minute chart, you will see how an unsuccessful attempt to consolidate above the level of 1.3218 and return to it with a test on the reverse side led to an excellent point of entry into sales. This quickly pushed the pair into the area of the first support level of 1.3170, from which there is now a small upward correction. However, I do not recommend rushing to buy the pound from this level yet. We need a false breakout, since most likely the bears will try to gain a foothold below this range in the near future. Only another unsuccessful attempt to break through with a return to 1.3170 forms a signal to buy the pound in the expectation of a return to the resistance of 1.3218. However, in the absence of bull activity, it is best to postpone long positions to the test of the minimum of 1.3115 in the expectation of a correction of 30-40 points within the day. No less important task for buyers is also a breakout and consolidation above the resistance of 1.3218, which will give confidence to the bulls and lead to an update of the maximum of 1.3260, where I recommend fixing the profits.

To open short positions on GBPUSD, you need:

The bears coped with the task and did not allow the breakout of the resistance of 1.3218, forming a good selling point from it. Also in the first half of the day, a support test of 1.3170 was already held, from where there is now a small profit taking. The main goal of sellers for the second half of the day will be to consolidate below this range, which will form a more powerful bearish wave, capable of returning the pair to the area of 1.3115, where I recommend fixing the profits. In a scenario of no active action on the part of sellers and return the pair to the level of 1.3218, and it can happen during a speech Fed Chairman Jerome Powell, it is best to defer short positions to the maximum months in the area of 1.3260 or sell GBP/USD immediately on a rebound from a major new resistance of 1.3316 based on the correction of 20-30 points inside a day.

Signals of indicators:

Moving averages

Trading is conducted around the 30 and 50 daily averages, which indicates that the bears are trying to take control 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 lower border of the indicator around 1.3180 will increase the pressure on the pound. A break in the upper limit of the indicator around 1.3225 may lead to another attempt to build a new upward trend.

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.