To open long positions on GBPUSD, you need:

In the first half of the day, sellers tried to gain a foothold below the resistance of 1.2237, and if you look at the 5-minute chart, you will see how the sell signal worked itself out after repeated testing of this level from the bottom up, but it was not possible to form a larger downward movement. This led to the return of GBP/USD to the level of 1.2237, the demolition of stop orders, and the formation of new support of 1.2222, which buyers are now very much counting on. While trading is above the level of 1.2222, demand for the pound will continue, and the speech of the Governor of the Bank of England, Andrew Bailey, may revive major players who are betting on a breakout and consolidation above the resistance of 1.2882, which may lead to the continued growth of GBP/USD already in the area of highs of 1.2336 and 1.2370, where I recommend fixing the profits. If the Bank of England's monetary policy report leads to the formation of pressure on the British pound, it is best to return to long positions only after the formation of a false breakout in the support area of 1.2222 or buy immediately for a rebound from large lows in the area of 1.2173 and 1.2122 with the aim of an upward correction of 30-40 points within the day.

To open short positions on GBPUSD, you need:

Sellers of the pound need to return GBP/USD to the level of 1.2222, and this should be done as quickly as possible. Only fixing below this range will increase the pressure on the pair, which will lead to an update of the minimum of 1.2173, and quite possibly to a test of large support of 1.2122, where I recommend fixing the profits, since the bulls will try to form the lower border of a new ascending channel. No less important is the protection of the resistance of 1.2882, where only the next formation of a false breakout will be a signal to open short positions. If growth is above this range, it is best to abandon sales before the test of a large resistance of 1.2336 or to rebound from the maximum of 1.2370.

Signals of indicators:

Moving averages

Trading is just above the 30 and 50 daily averages, which indicates the continuation of the upward correction.

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 upper limit of the indicator around 1.2882 will lead to a larger increase in the pound. In the case of a decrease in the pair, a breakthrough of the lower border of the indicator in the area of 1.2222 will increase the pressure on the pound.

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