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To open long positions on GBP/USD you need:
Yesterday's inflation data in the US limited the upward potential of the pound and today, in order to save the bull market, buyers need a break and consolidate above the resistance of 1.2566, which will lead to updating highs around 1.2600 and 1.2639, where I recommend to take profits. With a downward correction scenario in the first half of the day, long positions can be returned to a false breakdown from a support of 1.2511, as well as to rebound from a larger low in the area of 1.2469.
To open short positions on GBP/USD you need:
Pound sellers will expect a false breakdown in the resistance area of 1.2566, and even better, if the bulls do not even manage to reach this range in the first half of the day, which will make it possible to form a new upper limit of the descending channel. However, the main task of the bears will be a breakthrough and consolidation of support at 1.2511, which will push GBP/USD to the lows of 1.2469 and 1.2439, where I recommend taking profits. With further growth above 1.2566, short positions are best considered at the test of highs of 1.2600 and 1.2639.
Indicator signals:
Moving averages
Trade is conducted above 30 and 50 moving averages, but the upward momentum loses its strength.
Bollinger bands
If the pound goes down, support will be provided by the lower limit of the indicator around 1.2511. A break of the upper border around 1.2566 could lead to a new wave of growth of the pound.
Description of indicators
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