FX.co ★ Trading plan for the European session on August 4 EUR / USD and GBP / USD

EUR/USD

To open long positions for EURUSD, you need:

We can expect buyers to return to the market after a break and consolidation above 1.1888, which will allow the continuation of an upward trend in order to update the level of 1.1926 and 1.1954, where I recommend locking in profits. In case the euro declines in the first half of the day in the area of 1.1848, I recommend buying in that level only after a false breakdown, or immediately on a rebound from a large support of 1.1796.

To open short positions for EURUSD, you need:

In the morning, sellers will attempt to form a false breakdown at 1.1888, which will lead to an increase in short positions for the purpose of updating 1.1848 and further output at 1.1796, following the release of good data on the US labor market. If the euro rises above 1.1888, I recommend postponing selling to upgrade 1.1926, or selling immediately for a rebound from a larger resistance of 1.1954 with a small stop order higher.

GBP/USD

To open long positions for GBPUSD, you need:

I recommend to count on buying the British pound after updating yesterday's low in the support area of 1.3098, with the formation of a divergence on the MACD indicator. Otherwise, I recommend buying only at a rebound after updating 1.3054. In case of growth and consolidation above the level of 1.3165, you can also consider buying in the second half of the day in the event of a release of weak data on the US economy. The main target will be a level of 1.3211.

To open short positions for GBPUSD, you need:

Sellers can declare themselves after re-descending to the intermediate support area of 1.3130, where the pound's fall may continue to 1.3098. It is from 1.3098 that a further downward correction will depend on. If a quick rebound from this level does not occur, and the bears begin to gradually push the pair back to 1.3098, you can see new selling with the main target of 1.3054. If the pound is rising in the morning, I recommend selling after updating 1.3165 and forming a false breakdown there, or immediately to rebound from 1.3211.

Indicators

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