To open long positions on GBPUSD, you need:

Buyers of the pound are active only when the correction is down, and no one is in a hurry to break above the highs of this week. If you look at the 5-minute chart, you can see how the bears achieved a breakout of the support of 1.2508, when anchoring under which I recommended opening short positions. The test of this level from top to bottom after the correction formed a sell signal, however, the downward movement was no more than 30 points, after which buyers returned to the market, and dragged the pair back to the level of 1.2508. For the second half of the day, the bulls face the task of breaking through the resistance of 1.2536, which is visible now on the hourly chart. Fixing above this level will be a good signal to open long positions in GBP/USD in the expectation of continuing the upward trend to the maximum area of 1.2607. A more distant goal will be the level of 1.2676, where I recommend fixing the profits. In the scenario of a repeated decline in the pound, you do not need to rush to open long positions. Only a false breakout in the area of 1.2471 will be a buy signal. However, the larger support level has now shifted to the low of 1.2396, where you can buy the pound immediately on the rebound in the expectation of correction of 30-40 points within the day.

To open short positions on GBPUSD, you need:

Sellers did everything they could in the first half of the day, however, they failed to achieve leniency from major players, which keeps the pair in an ascending price channel. In the second half of the day, the bears need to try to protect the resistance level of 1.2536, where only the formation of a false breakout will be a signal to open short positions in the expectation of a repeated decline to the low of 1.2471, which remains their main goal for today. Only fixing below this level will increase the pressure on the pair, which will quickly push it to the minimum of 1.2396, where I recommend fixing the profits. In the scenario of a breakout of the resistance of 1.2536, sellers of the pound will only have to wait for the update of a large maximum of 1.2607 and open short positions from there immediately for a rebound in the expectation of correction of 30-40 points by the end of the day.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily averages, which gave the pair significant support today in the first half of the day, which keeps the market on the side of buyers.

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

Only a break in the upper limit of the indicator around 1.2536 will strengthen the demand for the pound. A break in the lower border of the indicator at 1.2500 will lead to another wave of decline in the pair.

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