01.09.202015:01 Forex Analysis & Reviews: GBP/USD: plan for the American session on September 1

To open long positions on GBPUSD, you need to:

It is very rare to see so many transactions in the pound as it was this morning. Both buyers and sellers could earn money on the market today. Everything was clear on the levels and on the trading system. Let's figure it out. If you look at the 5-minute chart and remember my morning forecast, you will see how I recommended buying the pound after the breakout and consolidation above the resistance of 1.3386, which happened. This was followed by a rise in the pound to the maximum of 1.3437, which brought about 50 points of profit. From the level of 1.3437, I recommended selling, which also allowed us to pick up about 20 points against the trend. A break and consolidation above 1.3437 is another buy signal and the pound will rise to the maximum of 1.3478, which is still about 40 points. So far, this deal is working itself out, however, you need to be extremely careful against such a strong upward trend with sales. At the moment, the bulls only need to form a breakout and consolidate above the resistance of 1.3478, after which we can expect the pound to continue growing to the highs of 1.3523 and 1.3563, where I recommend fixing the profits. If the pair declines in the second half of the day, only a false breakout in the support area of 1.3437 will be a signal to open long positions. This signal can be implemented after the release of ISM data for the US manufacturing sector. I recommend buying GBP/USD immediately on a rebound only from the minimum of 1.3386, to which the moving averages are now also reaching.

To open short positions on GBPUSD, you need to:

Sellers are still not doing well. So far, the bears have protected the resistance of 1.3478, and we can expect a second downward movement of about 30-40 points after the release of US data. However, if the GBP/USD approaches the level of 1.3478 again, it is better to exit the sales and wait for the next high of 1.3523 to be updated, since a very strong upward trend is a serious problem for sellers. You can also look at the rebound from the resistance of 1.3563 based on a correction of 30-40 points within the day. An equally important task for the bears will be to regain control of the level of 1.3437, which will lead to a larger sale of GBP/USD to the area of the 1.3386 minimum, 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 H1 hourly chart and differ from the general definition of the classic daily moving averages on the D1 daily chart.

Bollinger Bands

If the pair declines in the second half of the day, it is best to open long positions immediately on the rebound from the lower border of the indicator in the area of 1.3335.

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 the short and long positions of non-commercial traders.