FX.co ★ GBP/USD: plan for the American session on July 21

To open long positions on GBPUSD, you need:

In the first half of the day, against the background of the absence of important fundamental statistics, buyers of the British pound formed a fairly good signal to enter the market, which I described in more detail in my morning forecast. If you look at the 5-minute chart, you will see how the bulls managed to get above the resistance of 1.2668 at the beginning of European trading, and the repeated test of this level was a good signal to open long positions in GBP/USD. At the moment, the nearest target for buyers of the pound is the resistance of 1.2742, in the area of which I recommend fixing the profits. The longer-term goal remains a maximum of 1.2809. If the pressure on GBP/USD returns in the second half of the day, then only another false breakout formation in the support area of 1.2668 will be a signal to increase long positions. In case of a break in this range, I recommend leaving the market and waiting for the update of a larger minimum of 1.2618. You can also buy the pound on a rebound from the support of 1.2571 in the expectation of a correction of 30-40 points within the day. Just above this level, the 50-day moving average also passes.

To open short positions on GBPUSD, you need:

Sellers, after yesterday's break in the downward formation from July 9, are not in a hurry to return to the market amid the lack of news on Brexit and other fundamental data. They did not hold the level of 1.2668, which is their priority for the second half of the day. Only fixing below this range will be a signal to open short positions in the expectation of a decline in GBP/USD to the low of 1.2618 and a test of a larger support of 1.2571, where I recommend fixing the profits. If the market continues to follow a bullish scenario, it is best to consider short positions after forming a false breakout in the resistance area of 1.2742 or sell the pound immediately on a rebound from the maximum of 1.2809 in the calculated correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is above the 30 and 50 daily averages, which indicates a continuation of the bull market formed yesterday.

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

If the pair declines, the lower border of the indicator at 1.2635 will provide support.

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