To open long positions for GBP/USD, it is required:
Buyers managed to stay above the support level of 1.3130, which I mentioned in the morning review. However, weak UK GDP data limited the upward potential of the British pound. The main task for the second half of the day is to break through and consolidate above the resistance of 1.3169, which will lead to the formation of a new upward movement in the pound with a high in the area of 1.3217, where I recommend to lock in the profit. In case the GBP/USD declines in the second half of the day, you can return to long positions after a false breakdown of support at 1.3125 or a rebound from 1.3090.
To open short positions for GBP/USD, it is required:
As long as the trade is below the resistance of 1.3169, the pressure on the pound will remain, which may lead to a second decline and a support test of 1.3125, the breakdown of which will lead to a bigger sell-off of the GBP/USD with an exit to the lows in the area of 1.3090 and 1.3047, where I recommend that in case the pound grows above the resistance of 1.3169, following the release of inflation data in the United States, it is best to return to short positions from a high of 1.3217.
The price is above the 30-day and 50-day moving average, which indicates a sustained growth of the pound.
Support is provided by the middle of the Bollinger Bands channel, which keeps the upward potential in the pound.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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