GBP/USD: plan for the American session on August 5

To open long positions on GBPUSD, you need:

In the first half of the day, it was not possible to form a sufficiently good buy signal from the level of 1.3100, since after breaking through this range, a repeated test from the top to the bottom of this area led to its breakdown and the pair went below 1.3100. Immediately, you could count on short positions, and there was even a signal to open them after the return of GBP/USD from the bottom up to the resistance of 1.3100, which occurred after the publication of the UK services sector. But even then, no luck, and those who sold were trapped. Apparently, no one wants to concede the important level of 1.3100, which is why this game is being played to collect stop orders. Well, this happens, and without it, the market is nowhere. At the moment, the bulls are fixed above 1.3100 and form a triangle on the 5-minute chart in the continuation of the upward trend, the high probability of which I paid attention to in my morning forecast. While trading will be conducted above the level of 1.3100, there is a high probability of the pound returning to the resistance of 1.3169, but only its breakdown and consolidation above will form the next point for entering long positions. In this scenario, you can expect growth in the area of highs 1.3228 and 1.3265, where I recommend fixing the profits. If the pressure on the pound returns in the second half of the day, and this will happen only on condition of very good fundamental data on the US, then it is best to focus on new purchases from the support of 1.3041 or buy GBP/USD immediately on a rebound from the minimum of 1.2980, counting on a correction of 30-40 points within the day.

To open short positions on GBPUSD, you need:

The bears defended the level of 1.3100 and did everything to prevent the formation of a new upward trend. However, this was not enough, and the 1.3100 area was missed, which was to be expected, since this was the third attempt to protect this range. At the moment, all the bears' efforts are shifted to the resistance of 1.3169, to which the pair is gradually returning. However, I recommend opening short positions there only if a false breakout is formed. You can sell the pound on a rebound from the highs of 1.3228 and 1.3265 in the expectation of a correction of 30-40 points within the day. If the data on the ISM index for the US non-manufacturing sector turns out to be much better than the forecasts of economists, the bears will try to regain support for 1.3100, but it is best to open short positions from there only after fixing lower, similar to how the bears acted today in the first half of the day. I marked the bottom-up test of the 1.3100 area on the 5-minute chart. A break of 1.3100 will lead to a quick sell-off of GBP/USD to the lows of 1.3041 and 1.2980, where I recommend fixing the profits.

Signals of indicators:

Moving averages

Trading is just above the 30 and 50 daily averages, which indicates further growth 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

Breaking the upper limit of the indicator around 1.3110 will lead to a new wave of growth. A break in the lower border of the indicator at 1.3041 will increase the pressure on the pound.

Description of indicators