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To open long positions on GBP/USD, you need:
In the first half of the day, there was a report on inflation in the UK, which fell sharply in October this year by 0.2% compared to September, being even worse than economists' forecasts. Against this background, the pound tried to sink against the US dollar, but the bulls held the level of 1.2825. While trading is above this range, it is best to wait for the inflation report in the US and only then focus on the return and breakthrough of the resistance of 1.2864, the consolidation of which will be the first signal to buy the pound in order to update the weekly highs of 1.2895 and 1.2915, where I recommend taking the profit. In the case of a breakthrough of the support of 1.2825 in the second half of the day, it is best to count on new purchases from the monthly lows in the area of 1.2799 and 1.2769.
To open short positions on GBP/USD, you need:
Sellers managed to keep the pair below the resistance of 1.2864, but this did not lead to the formation of a false breakdown. In the second half of the day, we should focus on the US inflation report, and only after a failed attempt to consolidate above the level of 1.2864, I recommend opening new short positions. The more important goal of the bears remains a breakthrough and consolidation below the support of 1.2825, which in the first half of the day could not be done even against the background of bad inflation data in the UK. Only in this scenario, you can expect the continuation of the downward trend in the area of lows of 1.2799 and 1.2769, where I recommend taking the profit. If the bulls manage to break above the resistance of 1.2864, you can open short positions on the rebound from the weekly high of 1.2895, as well as from the larger resistance of 1.2915.
Indicator signals:
Moving Averages
Trading is around the 30 and 50 daily averages, indicating some market uncertainty.
Bollinger Bands
A break of the lower border of the indicator at 1.2831 will lead to a sell-off of the pound. The upward movement will be limited to the upper level of the indicator at 1.2865.
Description of indicators
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