To open long positions on GBPUSD, you need:

At the beginning of the week, the British pound was surprised by its reaction to rising inflation, when it began to lose ground sharply against the US dollar. The same thing happened today in the first half of the day, after the release of just excellent data indicating a sharp jump in activity in the services and manufacturing sectors of the UK. But our task here is not to understand the subtleties of the economic calendar, but to trade, so let's see what signals were in the first half of the day, and where you can and should have earned. Even in the morning forecast, I recommended opening short positions after fixing below the level of 1.3223, which happened. On the 5-minute chart, you can see how the pair bounces from this level during the first test, but then the bears achieve its breakdown and test it from the bottom up. After making sure that the level was held, it was necessary to sell the pound to reduce to the support of 1.3185, where you could watch a very small rebound of the pair up. At the moment, the bulls are active in the area of 1.3135, where I recommended opening long positions immediately on the rebound. While trading is above this range, we can expect an upward correction of 30-40 points within the day, but the more important task of the bulls will be to return the resistance to 1.3185. Only then can we talk about a larger growth of the pound to the maximum of 1.3223, where I recommend fixing the profits. If the bears gradually pull the pair back to the support of 1.3135, it is best to postpone long positions until the low of 1.3084 is updated, since it is far from clear what the market reaction to the US PMI indices will be, especially in a pair with the British pound. From 1.3084, you can open long positions immediately for a rebound in the expectation of correction of 30-40 points.

To open short positions on GBPUSD, you need:

Most likely, sellers will not rush to break through the support of 1.3135 and wait for the release of data on US PMI indices. However, fixing below this range will certainly lead to a new sell signal in the hope of reducing and updating the lows of yesterday in the area of 1.3084 and 1.3044, where I recommend fixing the profits. In the scenario of growth of GBP/USD in the second half of the day, it is best not to rush with sales and wait for the update of the resistance of 1.3185, where you can open short positions immediately on the rebound. If there is no bear activity at this level, I recommend selling then only after the 1.3223 resistance test, counting on correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is conducted in the area of 30 and 50 daily averages, which indicates a very serious struggle for the direction of the market.

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

The volatility is huge. Bears are already trying to break through the lower border of the indicator around 1.3160. In the case of an upward correction of the pair, you can open short positions on a rebound from the average border of 1.3210.

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
• Non-profit traders are speculators, such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet certain requirements.
• Long non-commercial positions represent the total long open position of non-commercial traders.
• Short non-commercial positions represent the total short open position of non-commercial traders.
• Total non-commercial net position is the difference between short and long positions of non-commercial traders.