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To open long positions on GBPUSD, you need:
The British pound strengthened its position throughout the first half of the day after media reports that the EU may ease requirements for a trade agreement with the UK, which returned buyers to the market, allowing them to demonstrate the growth of more than 100 points. If you look at the 5-minute chart, then pay attention to the weak attempt of the bears to return to the market after the resistance test of 1.2245, but fixing above this level led to the continuation of the upward correction. At the level of 1.2293, which I spoke about in my morning forecast, there was no one at all, and it turned out to be wrong. A breakout and consolidation above the resistance of 1.2336, which the bulls are now trying to form, will allow us to count on the continuation of the upward trend with the update of the highs of 1.2370 and 1.2425, where I recommend fixing the profits. However, much more will depend on data on consumer confidence in the US, which can quickly return demand for the US dollar. Therefore, if the pound falls below the level of 1.2336, it is best to postpone long positions until the support is updated at 1.2293, with the formation of a false breakout there or buy immediately for a rebound from the minimum of 1.2245, in the calculation of correction of 30-35 points within the day.
To open short positions on GBPUSD, you need:
A lot will depend on how the bears behave after the report on the US economy. The return of GBP/USD to the level of 1.2336 may lead to profit-taking on long positions and, accordingly, to a decrease in the pair to the support area of 1.2293, where I recommend fixing the profits. The longer-term goal of sellers will be a minimum of 1.2245, but it will be extremely difficult to reach it today. If the demand for the pound continues in the afternoon, then it is best to look at short positions on a false breakout from the resistance of 1.2336 or sell immediately on a rebound from a larger maximum of 1.2425, since there is still optimism about the UK trade agreement with the EU and any good news in this direction will feed the British pound to new buyers.
Signals of indicators:
Moving averages
Trading is conducted above the 30 and 50 daily averages, which indicates further growth of the pound.
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
In the case of a downward correction, the average border of the indicator in the area of 1.2245 will act as support.
Description of indicators
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