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To open long positions on GBPUSD, you need:
My morning forecast happened, where I recommended opening long positions on the pound in the case of a false breakout. On the 5-minute chart, the bears tried to gain a foothold below 1.2921, however, nothing happened. Moreover, after the pair returned to this range, the test of this level from top to bottom led to the formation of an excellent entry point for long positions. The growth from this level was about 45 points, after which there was a major drop in the pound. In the afternoon, the bulls need to rehabilitate and regain the area of 1.2921. However, only fixing above this level (similar to the morning entry) will be a signal to open long positions in the expectation of a new wave of growth in the area of the maximum of 1.3004, where I recommend fixing the profits. If the pressure on the pound persists in the second half of the day, it is best to wait for the decline of GBP/USD to the support area of 1.2843 and open long positions after a false breakout is formed. I recommend buying the pair immediately for a rebound after updating the weekly minimum in the area of 1.2777 with the goal of a correction of 30-40 points within the day.
To open short positions on GBPUSD, you need to:
The bears managed to break below the resistance of 1.2921, however, the formation of a convenient entry point is not yet complete. On the chart, I marked the area around 1.2921, which you should pay attention to. Returning and testing it from the bottom up on the volume in the second half of the day can form an additional entry point into short positions on the pound, the main goal of which will be to update the minimum of 1.2843, where I recommend fixing the profits. Persistent sellers will still expect to test the minimum of 1.2777. If we do not see active sales after updating the resistance of 1.2921 in the second half of the day, it is better not to hurry. However, you can wait for the pound to recover to the maximum of 1.3004, where you can sell the pair immediately for a rebound in the expectation of a correction of 30-40 points within the day.
Signals of indicators:
Moving averages
Trading is conducted below 30 and 50 daily averages, which indicates an attempt by sellers to regain control of the market by the end of the week.
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 classic daily moving averages on the daily chart D1.
Bollinger Bands
Breaking the lower limit of the indicator in the area of 1.2880 will lead to a new wave of decline in the pound. Growth will be limited by the upper level of the indicator in the area of 1.3000.
Description of indicators
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