To open long positions on GBPUSD, you need:

In the morning forecast, I paid attention to purchases from the level of 1.2335 when forming a false breakout, which happened. This is clearly visible on the 5-minute chart. Bears failed to cope with the task of fixing below this range, which interested speculative players who expect the pound to return to the resistance of 1.2487. Thus, from a technical point of view, nothing has changed in the market. At the moment, buyers will continue to be concentrated on keeping the support of 1.2335, and while the trading is above this level, the demand for the pound will remain that will lead to the continued growth of GBP/USD to the resistance area of 1.2487, a break of which will provide a direct route to the highs of 1.2605 and 1.2686, where I recommend taking the profit. In the scenario of a further correction of the pound to the level of 1.2335, you do not need to rush to open long positions. It is best to wait for the support test of 1.2150, just above which the 50-daily moving average passes, or buy immediately for a rebound from the minimum of 1.1985.

To open short positions on GBPUSD, you need:

Sellers of the pound need to try to return the market under their control and to do this, it is necessary to consolidate below the support of 1.2335. The first attempt to do this was unsuccessful. A break of this level will lead to a larger sale of GBP/USD in the area of lows of 1.2150 and 1.1985, where I recommend fixing the profits. The support test of 1.1985 will also indicate the resumption of the bear market. In the scenario of an attempt by bulls to resume the upward trend, only the formation of a false breakout in the resistance area of 1.2487 will be the first signal to open short positions. Otherwise, it is best to sell the pound on a rebound from the highs of 1.2605 and 1.2686.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily averages, which indicates the probability of continuing the upward trend.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger Bands

A break in the lower border of the indicator around 1.2335 will increase the pressure on the pound and lead to its larger decline.

Description of indicators

• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
• MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
• Bollinger Bands (Bollinger Bands). Period 20