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

Buyers of the pound retreated after the release of the report, which indicated a slowdown in the annual growth of inflation in the UK. At this point, I drew attention in my morning review and gave recommendations on how to proceed. Now, the bulls need to return to the resistance level of 1.2465, which can push the pair to the area of this week's high – 1.2354, where I recommend taking the profit since without support from the report of the Federal Reserve System, it is hardly possible to count on a larger upward trend. In the scenario of GBP/USD decline in the second half of the day, long positions can be looked at immediately on the rebound from the large support of 1.2397, which limits the likelihood of a bear market development this week.

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

Sellers coped with the morning task and returned to the level of 1.2465. While trading will be conducted below this range, we can expect a further bearish correction of the pound in the area of a large weekly low of 1.2397, where I recommend taking the profit. The formation of a false breakdown in the resistance area of 1.2465 in the second half of the day will also be an additional signal to open short positions. If the bears miss the level of 1.2465, it is best to consider short positions in GBP/USD after the publication of the Fed's decision on interest rates, the higher, the better – preferably from the highs of 1.2563 and 1.2640.

Signals:

Moving Averages

Trading around 30 and 50 moving averages, indicating some market uncertainty.

Bollinger Bands

In the case of an upward correction before the Fed's decision, the upper limit of the indicator around 1.2520 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