12.08.202013:19 Forex Analysis & Reviews: GBP/USD: plan for the American session on August 12

To open long positions on GBPUSD, you need:

From a technical point of view, nothing has changed. After the release of the UK GDP data, bulls tried to resume the growth of the pound from the support of 1.3020, but there was no rapid upward movement, which puts this level at risk. It is still very important for the bulls to protect the support of 1.3020, on which a lot depends. The next formation of a false breakout on it will be a signal to open long positions in the pair in the expectation of a recovery to the middle of the channel of 1.3105, where I recommend fixing the profits. The longer-term target for the bulls remains this month's maximum of 1.3181. If the pressure on the pound returns, and this will happen only with very good data on inflation in the US, it is best to postpone long positions to the test of the minimum of 1.2911 or buy GBP/USD immediately on the rebound from the more powerful support of 1.2839 in the calculation of a correction of 30-40 points within the day.

To open short positions on GBPUSD, you need:

Sellers still need to break below the support of 1.3020, as fixing below this level will be a good signal for further opening of short positions in the expectation of reducing the pair to a minimum of 1.2911, where I recommend fixing the profits. If the US inflation data comes out much better than economists' forecasts,we can expect the pound to fall to the low of 1.2839. In the scenario of further recovery of the pair today in the second half of the day, it is best not to rush with sales, and wait for the formation of a false breakout in the resistance area of 1.3105. I recommend selling GBP/USD immediately on a rebound only from this month's maximum in the area of 1.3181, counting on a correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is below the 30 and 50 day averages, which indicates a further decline in the pound.

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 1.3010 will lead to a new sell-off of the pound.

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.