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To open long positions on GBPUSD, you need:
Buyers of the pound tried several times today to keep the pair above the support of 1.2395, however, they still missed this level. If you look at the 5-minute chart, you will see how the bears achieved a breakout of the support of 1.2395 and now the trade is conducted under this range. However, the signal to open short positions has not yet been formed. We'll talk about this later. Buyers in the second half of the day need an urgent return above 1.2395, which forms a good signal already to buy the pound in the expectation of a return and updating the resistance of 1.2463. The longer-term goal, in the case of active profit-taking on short positions, will be a maximum of 1.2536. If the bulls do not manage to return above the level of 1.2395, then I advise you to wait for the opening of long positions. The optimal scenario for buying will be to update the week's minimum in the area of 1.2334, based on a correction of 30-40 points within the day.
To open short positions on GBPUSD, you need:
The bears achieved their goal and broke below the level of 1.2395. Now it needs a bottom-up test to make sure that the market intends to continue the downward trend. I marked the test zone on the 5-minute chart. Only after this, you can sell the pound/dollar pair in the expectation of returning to weekly lows and updating the support at 1.2334, where I recommend fixing the profits since it is unlikely that you will be able to break through below this range. If this happens, the next target will be a minimum of 1.2290 and 1.2237. If the bulls regain the area of 1.2395 in the second half of the day, it is best to open short positions only after forming a false breakout near the maximum of 1.2463 or sell the pound/dollar pair immediately on the rebound from the larger resistance of 1.2536 in the calculation of correction of 20-30 points within the day.
Signals of indicators:
Moving averages
Trading is conducted below the 30 and 50 daily averages, which act as a resistance for buyers.
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
A break in the lower border of the indicator at 1.2395 should increase the pressure on the British pound. If there is no rapid downward movement, it is best to abandon sales at the lows at the end of the week.
Description of indicators
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