GBP/USD: plan for the American session on August 19
To open long positions on GBPUSD, you need:
In the first half of the day, several signals were formed to sell the British pound, which brought a fairly good profit of about 50 points of movement within the day. Closing long positions on the pound occurred after the lack of reaction from major players to good data on the growth of inflation in the UK. If you look at the 5-minute chart, you will see how the bears form a false breakout in the resistance area of 1.3269 and start pushing the pair into the support area of 1.3212. But even if you did not manage to enter on this signal, an additional entry point was formed in short positions after the pair returned to this range again. At the moment, the bulls are trying to protect the level of 1.3212, but only the formation of a false breakout on it and a return to this range with its top-down test in the second half of the day will be a signal to open long positions. The goal will be to return to the maximum of 1.3260, as it is unlikely to break above this level. In the scenario of a further decline in the pound, it is best to postpone long positions until the update of the minimum of 1.3173, the test of which may take place after the publication of the Federal Reserve minutes.
To open short positions on GBPUSD, you need:
The bears did a great job in the morning and are now trying to gain a foothold below the level of 1.3212. While trading will be conducted below this range, most likely the pressure on the pound will continue, and an unsuccessful attempt to return to this range followed by another decline in the GBP/USD at 1.3212 in the second half of the day will be an excellent signal to build up short positions in the expectation of returning the pound to the area of the minimum of 1.3173, where I recommend fixing the profits. Too good protocols of the Federal Reserve System may lead to further decline of the pair to the support area of 1.3126. In the scenario of buyers returning support to 1.3212 in the second half of the day, and this option seems more realistic, it is best to sell the pound again on a rebound from the resistance of 1.3260 in the calculation of a correction of 20-30 points within the day.
Signals of indicators:
Trading is conducted above the 30 and 50 daily averages, which indicates the development of a bull market.
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.
If the pound rises in the second half of the day, the upper limit of the indicator around 1.3260 will act as a resistance.
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 traders are speculators, 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.
The material has been provided by InstaForex Company – www.instaforex.com