GBP/USD: plan for the European session on July 5. Pound is waiting for news on Brexit and US labor market data

To open long positions on GBP/USD you need:

Pound buyers will count on a false breakdown in the support area of 1.2555, which will be the first signal to open long positions. However, the main task is to return to a resistance of 1.2596, which will lead to a larger upward correction in the area of 1.2639, where I recommend taking profits in the first half of the day. In case of a decline scenario below a support of 1.2555, it is best to look at long positions for a rebound from a low of 1.2513.

To open short positions on GBP/USD you need:

Bears need a break of support at 1.2555, which will increase the pressure on the pair and will lead to updating lows of 1.2513 and 1.2483, where I recommend taking profits. Failing to consolidate above a resistance of 1.2596 will also be a good signal to open short positions. With growth above this range, you can sell for a rebound from a high of 1.2639.

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 low, 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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