To open long positions on GBP/USD, you need:

Buyers of the pound were unable to hold the resistance of 1.2762, which was expected to lead to a correction. At the moment, the task will be to hold the pair above the support of 1.2720, and the formation of a false breakout there will be a signal to buy. The aim of the bulls will also be the resistance of 1.2762, the breakthrough of which will lead to a maximum of 1.2799, where I recommend taking the profit. In the scenario of decline below the level of 1.2720 to long positions in GBP/USD, it is best to return to the rebound from the minimum of 1.2685 and 1.2643.

To open short positions on GBP/USD, you need:

The movement of the pound down will depend on the speech of Fed Chairman Jerome Powell. The breakout of the support of 1.2720 will provide further bearish movement to the area of lows of 1.2685 and 1.2643, where I recommend taking the profit. If the head of the Fed announces his intention to lower rates, it will lead to an increase in the pound. In this scenario, it is best to return to short positions only after updating the highs of 1.2799 and 1.2858

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, which indicates the formation of a downward correction.

Bollinger Bands

The breakthrough of the lower boundary of the indicator in the area of 1.2720 will increase the chance of a bearish market.

Description of indicators

• MA (moving average) 50 days – yellow
• MA (moving average) 30 days – green
• MACD: fast EMA 12, slow EMA 26, SMA 9
• Bollinger Bands 20