08.09.202013:37 Forex Analysis & Reviews: GBP/USD: plan for the American session on September 8

To open long positions on GBPUSD, you need to:

In the morning, I drew attention to the high probability of a decline in the pound against the background of recent statements made by the British Prime Minister. On the 5-minute chart, the breakout and consolidation under the level of 1.3115 formed an entry point into short positions for the continuation of the downward trend. A similar entry point was formed below the support of 1.3063, from which the bulls tried to make a nondescript upward rebound. Unfortunately, long positions on the pound from the level of 1.3007 did not work out, as the pair fell just 13 points short of it. Now, after the pair returns to the level of 1.3063, there is a fairly active struggle for this range again. Bulls need to break through above this level and gain a foothold on it, which eventually forms an entry point to long positions in the expectation of restoring the pound to the resistance of 1.3115, where I recommend fixing the profits. However, a more optimal scenario is to buy on the formation of a false breakout in the support area of 1.3007 or immediately on a rebound from the low of 1.2916, based on a correction of 30-40 points within the day.

To open short positions on GBPUSD, you need to:

Bears have already formed another entry point for short positions from the resistance of 1.3063, which they actively protect, and as long as trading is conducted below this range, we can expect a return of GBP/USD to the support of 1.3007 and its breakdown. Given that important fundamental statistics are not published in America today, it is likely that after fixing below this level, the bear market will only increase, forming an additional point for sales. In this scenario, we can expect a larger fall of the pair to the area of the minimum of 1.2916, where I recommend taking the profit. If the bulls manage to win back the resistance of 1.3063 in the second half of the day, it is best to wait for an upward correction to the level of 1.3115 and sell from there on a false breakout. I recommend making short positions immediately for a rebound only from the new high of today in the area of 1.3178, based on a correction of 30-40 points.

Signals of indicators:

Moving averages

Trading is conducted below the 30 and 50 daily averages, which indicates the continuation of a downward correction for the pair.

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

In case of growth, the average border of the indicator in the area of 1.3120 will act as a resistance, from which you can sell the pound immediately for a rebound.

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.