GBP/USD: plan for the American session on July 6

To open long positions on GBPUSD, you need:

From a technical point of view, nothing has changed at all, since volatility has remained at a fairly low level, which does not allow signals to be formed when entering the market. News on the PMI for the UK construction sector, where activity again began to show growth, did not significantly affect the pound's quotes. At the moment, while trading is conducted above the area of 1.2451, we can expect the pound to continue growing to the maximum of 1.2528, fixing above which will necessarily lead the pair to a new resistance area of 1.2607, where I recommend fixing the profits. In the scenario of a decline in GBP/USD in the second half of the day, only the formation of a false breakout at the level of 1.2451 will be a signal to open long positions. This may happen after the release of bad reports on activity in the US service sector. If there is no activity from the bulls in this range, it is best to postpone purchases until the update of the larger area of 1.2386, from which the bulls will try to build the lower border of the new ascending channel.

To open short positions on GBPUSD, you need:

Sellers of the pound will definitely show activity in the resistance area of 1.2528, which they managed to protect last Thursday, forming a fairly good sell signal from there. However, in the first half of the day, the pair could not reach this level. At the moment, the bears need to consolidate below the level of 1.2451, which will be a signal to open short positions in the expectation of resuming the downward correction to the area of the minimum of 1.2386, where I recommend fixing the profits. In the scenario of further growth of GBP/USD, it is best to postpone sales until the formation of a false breakout at the level of 1.2528. However, you can safely open short positions immediately for a rebound only after testing the maximum of 1.2607, counting on a correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is conducted just above the 30 and 50 daily averages, which leaves a chance of continuing the upward correction of 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 in the area of 1.2451 should increase pressure on the British pound. Breaking the upper limit of the indicator around 1.2510 will lead to a new growth in GBP/USD.

Description of indicators