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

Today's reports on the UK labor market may temporarily stop the downward movement in the pound, but the general background remains negative. Bulls are required to hold or form a false breakout in the area of intermediate support of 1.2509 with confirmation of this breakout by divergence on the MACD indicator. Only after that, you can count on the reverse growth of GBP/USD in the resistance area of 1.2543 and the maximum test of 1.2580, where I recommend taking the profit. In the scenario of further decline of the pound, it is best to look at long positions after updating the minimum of 1.2469 or a rebound from larger support of 1.2439.

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

Bears will aim to break the support of 1.2509, and the consolidation below this level, which may occur after a weak report on the UK labor market, will lead to a further downward momentum of the pair to the area of the lows of 1.2469 and 1.2439, where I recommend taking the profits. If the bulls manage to form a false breakout at the level of 1.2509 in the first half of the day, then it is best to return to short positions on the resistance test of 1.2543 or on a rebound from the weekly maximum in the area of 1.2580.

Indicator signals:

Moving Averages

Trading is conducted below 30 and 50 moving averages, which indicates the preservation of the downward trend.

Bollinger Bands

In the case of the pound growth in the first half of the day, the upper limit of the indicator in the area of 1.2535 will act as a resistance.

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