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

Yesterday's growth of the pound occurred after the farewell speech of Theresa May, which was replaced by Boris Johnson. Her soft tone against Brexit gave some hope to buyers of GBP/USD, which led to a small upward correction. At the moment, the whole focus of the bulls will be shifted to the resistance of 1.2501, the breakthrough of which will lead to further growth of the pair in the area of the highs of 1.2534 and 1.2563, where I recommend taking the profits. In the scenario of a pound decline in the first half of the day, amid the lack of news, a false breakout in the area of 1.2462 will be a direct signal to open long positions. Otherwise, buy GBP/USD is best on the rebound from the minimum of 1.2429.

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

Bears took advantage of large resistance levels and returned to the market yesterday, forming the area of 1.2501, which has an important emphasis. The formation of a false breakout and an unsuccessful attempt to consolidate above this level in the morning will serve as a good signal for the sellers of the pound, whose main goal will be the support of 1.2462. A breakthrough of this level will only strengthen the bearish momentum and cross out any hope of buyers for further upward correction. As soon as the new British Prime Minister returns to the previous tone of the statement on the account of the hard Brexit, the pressure on the pound will certainly increase, as the uncertainty will only continue to grow.

Indicator signals:

Moving Averages

Trade around 30 and 50 moving averages, indicating some uncertainty with further direction.

Bollinger Bands

The pound growth will be limited by the upper limit of the indicator around 1.2501. The break of the lower boundary in the area of 1.2462 will increase the pressure on the pair.

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