GBP/USD: plan for the European session on June 7. The bulls again failed to go beyond the highs of the week, but the chance

To open long positions on GBP/USD you need:

Yesterday, pound buyers made another attempt to grow above the resistance of 1.2739, which was again unsuccessful. Today, in the first half of the day, attention will be shifted to the report on inflation expectations, which can help the pound to get above the resistance of 1.2705, which will increase demand for it and lead to the third test of a week high of 1.2739, where I recommend taking profits. A breakdown of 1.2739 can occur only after the release of a weak report on the US labor market, which is expected in the afternoon. With the GBP/USD decline scenario, the support will be the area of 1.2668, however, opening long positions immediately to the rebound is best for the low of 1.2644.

To open short positions on GBP/USD you need:

Pound sellers will expect the formation of a false breakdown in the resistance area of 1.2705. Only in such a scenario can we expect the pound to further decline to the support area of 1.2668 and an update of the low of 1.2644, where I recommend taking profits. If the bulls manage to return to a resistance of 1.2705 in the first half of the day, it is best to open short positions to rebound from a resistance of 1.2739.

Indicator signals:

Moving averages

Trade is conducted in the region of 30 and 50 moving averages, which indicates the lateral nature of the market.

Bollinger bands

Volatility is reduced, which does not provide signals to enter the market.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
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