To open long positions on GBP/USD, you need:
In the first half of the day, buyers of the pound made an unsuccessful attempt to continue the upward correction, which put the market in a deadlock again. The target for the bulls is still the resistance of 1.2501, the breakthrough of which will lead to further growth of the pair to the highs of 1.2534 and 1.2563, where I recommend taking the profit. Under the scenario of reducing the pound in the second half of the day, which may occur after the ECB head Mario Draghi's speech, only another false breakdown in the area of 1.2462 will be the first signal for opening long positions. Otherwise, buying GBP/USD is best on the rebound from a minimum of 1.2429.
To open short positions on GBP/USD, you need:
Bears will wait for news related to Brexit and only then "tightly" back to the market. The formation of a false breakout and an unsuccessful attempt to consolidate above the level of 1.2501, which occurred in the first half, served as the first signal for the opening of short positions in GBP/USD, but it has not yet led to serious sales. Finding below the level of 1.2501 now serves the sellers of the British pound, which in the afternoon will seek to the area of the minimum of 1.2462, a breakthrough of which 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 increase, which will lead to new lows in the area of 1.2380 and 1.2340.
Indicator signals:
Moving Averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates market uncertainty.
Bollinger Bands
Volatility is low, which does not give signals to enter 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