FX.co ★ GBP/USD: plan for the American session on July 28

To open long positions on GBPUSD, you need:

From a technical point of view, nothing special happened in the first half of the day, except that the bulls failed to hold the pair above the support of 1.2852, and the bears did not offer anything below this level. As a result, no entry points were formed, and the level of 1.2852 was blurred. If you look at the hourly chart, you will see that the resistance of 1.2899 remains the benchmark for buyers. But only a consolidation at this level will be a signal to buy the pound in the expectation of continuing the bull market to the maximum area of 1.2961. The longer-term goal will be the range of 1.3025, where I recommend fixing the profits. However, such growth can be expected only after the release of fairly good fundamental data on the US economy. If the GBP/USD falls again in the second half of the day to the new support area of 1.2840, I recommend opening long positions from there only after forming a false breakout. If the bulls do not show activity in this area, it is best to postpone long positions until the update of the minimum of 1.2786 or buy the pound immediately on the rebound from the support of 1.2725 in the expectation of a correction of 30-40 points within the day.

To open short positions on GBPUSD, you need:

An unsuccessful attempt to break below the support of 1.2852 left the market on the side of the bulls and according to the chart, the bears are not in a hurry to return. Now everything will depend on the report on consumer confidence in the US, which will become a new benchmark in the market in the afternoon. The formation of a false breakout at 1.2899 will be the first signal to open short positions against the trend. However, a more important task for the bears will be to regain support for 1.2840. Only fixing below it will increase the pressure on the pair and lead to a downward correction to the area of the minimum of 1.2786, where I recommend fixing the profits. The area of 1.2725 will be a more distant target. If sellers do not hurry to return to the market and miss the resistance of 1.2899 in the second half of the day, it is best to abandon short positions before updating the maximum of 1.2961 or sell GBP/USD immediately on the rebound from the resistance of 1.3025 in the calculation of a correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is conducted in the area of 30 and 50 daily averages, which indicates the lateral nature of the market.

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 upper limit of the indicator around 1.2900 will lead to an increase in the pound. A break in the lower border of the indicator at 1.2840 will increase the pressure on the pair.

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 traders are speculators, 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 short and long positions of non-commercial traders.