To open long positions on GBP/USD, you need:
Despite the good data on the service sector, as well as the fact that the buyers of the pound managed to stay above the support of 1.2697 in the first half of the day and even formed a false breakdown on it, it did not allow to build a new upward trend. While trading will be conducted over this range, the demand for the British pound will remain, which can still lead to an update of the maximum of 1.2744 and 1.2800, where I recommend fixing the profit. In case of returning to the level of 1.2697, it is best to consider long positions after updating the minimum of 1.2650 or a rebound from the area of 1.2594.
To open short positions on GBP/USD, you need:
The repeated test of the support of 1.2697 should lead to its breakdown, which will allow us to expect a decrease in GBP/USD already in the area of larger lows 1.2650 and 1.2594, where I recommend fixing the profit. In the scenario of further growth of the pound against the backdrop of a weak US dollar due to talk about lowering the interest rate, will stop the upward correction of a large resistance level of 1.2744, where you can look at the short positions immediately on the rebound.
Indicator signals:
Moving Averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates the completion of the upward correction of the pound.
Bollinger Bands
The volatility of the indicator has fallen, which does not give signals on entering the market.
Description of indicators
MA (moving average) 50 days – yellowMA (moving average) 30 days – greenMACD: fast EMA 12, slow EMA 26, SMA 9Bollinger Bands 20