28.08.202013:41 Forex Analysis & Reviews: GBP/USD: plan for the American session on August 28

To open long positions on GBPUSD, you need:

In the morning, I paid attention to purchases after the breakdown and fixing above the resistance of 1.3228, which happened. However, according to my trading system, I did not wait for a confirmation signal to open long positions in the form of a test of this level from the reverse side, so I was forced to skip this trade. Already during the growth of the pound to the resistance of 1.3281, a good sell signal was formed. This is especially noticeable after returning to the range of 1.3281 and testing it from the bottom up. I highlighted the entry point on the chart. However, this did not lead to a larger downward movement. The drop was about 25 points, after which the market continued to follow the trend. At the moment, while trading is above the resistance of 1.3271, we can expect the pound to continue growing to the maximum of 1.3324, where the bulls will again take profits. The longer-term target remains the resistance of 1.3375. In the scenario of a decline in GBP/USD in the afternoon, you can open long positions after the formation of a false breakout in the area of 1.3271 or buy the pair immediately upon a rebound from the support of 1.3228, where the moving averages are also concentrated.

To open short positions on GBPUSD, you need:

As we can see, bears are having a hard time. Any attempts to return them to the market and reduce the pound is considered a good level to buy. At the moment, the main task is to protect the resistance of 1.3324, after the test of which you can expect a correction of 20-30 points within the day. If there is no bear activity at this level, it is best to postpone sales until the test maximum of 1.3375. When selling the pound today, remember that you are going against the trend. An equally important goal of the bears is also to return the pair to the support of 1.3271, since only this will force the bulls to close positions and lead to a larger downward correction to the area of the minimum of 1.3228, where I recommend fixing the profits.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily averages, which indicates that the pound continues to grow on the trend.

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 declines in the afternoon, it is best to open long positions immediately on the rebound from the average border of the indicator around 1.3228.

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.