GBP/USD: plan for the American session on September 14
To open long positions on GBPUSD, you need:
In my morning forecast, I recommended opening long positions after the breakout and consolidation above the level of 1.2843, which happened. On the 5-minute chart, the bulls gained a foothold above this resistance, even testing it several times from top to bottom, forming an excellent entry point for long positions. While trading will be conducted above the level of 1.2843, the continuation of the upward correction to the area of the maximum of 1.2921 can be expected, where I recommend fixing the profits. A further target will be the area of 1.2991. If the pound falls below the level of 1.2843, it is best to postpone long positions until the update of a large monthly minimum of 1.2777 or open long positions immediately for a rebound from the support of 1.2725 in the expectation of a correction of 30-40 points within the day. Given the lack of important fundamental statistics, the bulls have a chance to continue growing.
To open short positions on GBPUSD, you need:
It’s too early for bears to panic. This week, hearings in the British Parliament will begin on the Brexit bill, which will continue to put pressure on the GBP/USD pair. Therefore, sales can be delayed until the update of the larger resistance of 1.2921. However, even if the growth scenario is even higher, you can safely sell the pair for a rebound from the maximum of 1.2991 and wait for the resumption of the bear market. No less important task in the short term will be the return of the bears to the level of 1.2843, the test of which from the bottom up forms a fairly good entry point into short positions that will lead GBP/USD to the area of the minimum of 1.2777. All further downward movement in the short term depends on the breakout of this level. This scenario will lead to a test of the new ranges of 1.2725 and 1.2675.
Signals of indicators:
Trading is just above the 30 and 50 daily averages, which indicates that the bulls are trying to build an upward correction in the pair.
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 classic daily moving averages on the daily chart D1.
If the pound declines, the lower border of the indicator around 1.2775 will provide support, from where I recommend buying the pair 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.
The material has been provided by InstaForex Company – www.instaforex.com