01.06.202007:39 Forex Analysis & Reviews: GBP/USD: plan for the European session on June 1 (analysis of yesterday's deals). Pound movements indicate an active struggle for further direction. Bulls need breakout of 1.2411

To open long positions on GBP/USD, you need:

On Friday, in my forecast for the afternoon, I paid attention to purchases after the next update of support 1.2290. If you look at the 5-minute chart, you will see how, after the next test of this area, the bulls without hesitation returned to the market, counting on the continuation of the uptrend formed from mid-May. At the moment, their task is to break and consolidate above the resistance of 1.2411, the primary test of which has already taken place today at the Asian session. The bulls will be able to maintain a good upward momentum in this scenario, which can lead the pair to new highs in the area of 1.2463 and 1.2508, where I recommend taking profits. In case GBP/USD falls in the morning, and this can happen only after poor data on business activity in the UK manufacturing sector, a false breakout in the support area of 1.2348 will be a signal to open long positions, otherwise it is best to consider buying immediately for a rebound from the support of 1.2290, which repeatedly helped out last Friday.

To open short positions on GBP/USD, you need:

The task of sellers in the first half of the day is to form a false breakout in the region of this week's high, where resistance 1.2411 passes. However, more serious pressure on the pair can only form if there is disappointing data on manufacturing activity in the UK or negative news related to negotiations on a trade agreement with the EU. An equally important task for the bears is to return GBP/USD to the support area of 1.2348, consolidating below this range can lead to forming a new downward impulse that can pull down the pound to support 1.2290, and then to a larger level of 1.2237, where I recommend taking profit . In a growth scenario above this week's high, it's best not to rush into opening short positions, but rather wait until the levels 1.2463 and 1.2508 are updated, where you can sell immediately for a rebound while expecting a correction of 20-30 points at the end of the day.

Signals of indicators:

Moving averages

Trade is conducted above 30 and 50 moving averages, and the market is on the side of pound buyers.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differs from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger bands

A break of the upper border of the indicator in the region of 1.2411 will lead to a larger growth of the pound. If the pair decreases, support will be provided by the lower border in the area of 1.2290.

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
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