GBP/USD: trading plan for the US session on June 7th (analysis of morning deals). The pound remains above 1.2784

In my morning forecast, I paid attention to the 1.2784 level and planned to make decisions on entering the market from it. Let's look at the 5-minute chart and figure out what happened there. The decline and the formation of a false breakdown there led to a buy signal, but after moving up by 15 points, the pressure on the pound decreased. In the afternoon, the technical picture still needed to be revised.

To open long positions on GBP/USD, you need:

It all depends on the US data. In the event of another slowdown in the growth of new jobs, you can safely buy the pound and sell the dollar. If the data indicate a return to the stability of the labor market and an increase in the average salary of Americans, most likely, the pressure on the pair will return, and we will see a new sell-off at the end of the week. Given that the technical picture has not been revised, I'm going to act again after a false breakdown in the support area of 1.2784 by analogy with what I discussed above. There are also moving averages that play on the buyers' side. This will give an entry point into long positions in the expectation of a breakthrough and a reverse top-down test of the resistance of 1.2814, which we did not reach yesterday. Purchases there will certainly lead to an update of the next level of 1.2853, which acts as a monthly maximum. The farthest target will be the 1.2890 area, where I'm going to take profits. In the scenario of a decline in GBP/USD and a lack of activity on the part of the bulls at 1.2784 in the afternoon, the pressure on the pair will increase. This will also lead to a decrease and update of the next 1.2755 support. Only the formation of a false breakout will be a suitable condition for opening long positions. I'm going to buy GBP/USD immediately on a rebound from the 1.2725 minimum in order to correct by 30-35 points within the day.

To open short positions on GBP/USD, you need:

Sellers have tried, but so far, they have little connection with reality. The figures for the United States will likely determine everything, but without a breakdown of 1.2784, it is unlikely that anything will be done. If the pair grows, only the protection of the nearest resistance of 1.2814, together with the formation of a false breakdown there, will become the starting point for the entry to sell the pound in order to decrease to the area of 1.2784. A break in this range will deal another blow to the bulls' positions, leading to the demolition of stop orders and opening the way to 1.2755. The farthest target will be the 1.2725 area, where I will record profits. With the option of GBP/USD growth and lack of activity at 1.2814 in the afternoon, the development of the bull market will continue, and buyers will regain the initiative. In this case, I will postpone sales until a false breakdown at the level of 1.2853. In the absence of a downward movement there, I will sell GBP/USD immediately for a rebound from 1.2890, but I am only counting on a correction of the pair down by 30-35 points within the day.

Indicator Signals:

Moving Averages

Trading is conducted around the 30 and 50-day moving averages, indicating a sideways market.

Note: The period and prices of the moving averages are considered by the author on the H1 hourly chart and differ from the general definition of classical daily moving averages on the D1 daily chart.

Bollinger Bands

In case of a decline, the indicator's lower boundary, around 1.2780, will act as support.

Indicator Descriptions: