FX.co ★ GBP/USD: plan for the American session on July 10. Pound buyers returned to the market, but hardly for a long time

To open long positions on GBP/USD, you need:

The speech of the Fed Chairman Jerome Powell instigated the purchase of the British pound, however, it is unlikely that the correction will not last long. To build a larger growth in GBP/USD requires a consolidation above the resistance of 1.2501, which will allow the bulls to reach the highs of 1.2537 and 1.2585, where I recommend taking the profit. In a scenario of the falling pound in the second half of the day, long positions are best to look on the test support of 1.2471 or from the monthly minimum in the area of 1.2439.

To open short positions on GBP/USD, you need:

Sellers of the pound need to form a false breakout in the resistance area of 1.2501, which will keep the bearish trend in the pair. Only in this scenario, you can count on short positions that will return the pound to the area of the lows of 1.2471 and 1.2439, where I recommend fixing the profits. If the bulls continue to push the pair up, it is best to look at the short positions after the resistance test of 1.2537 and 1.2585.

Indicator signals:

Moving Averages

Trading is conducted above 30 and 50 moving averages, which indicates a possible completion of the bearish market.

Bollinger Bands

In the case of the GBP/USD decline in the second half of the day, the support will be provided by the lower limit of the indicator around 1.2439.

Description of indicators

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