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

Today's correction to the area of the first support levels, as well as at the end of last week, allowed the buyers of the pound to retain the upward potential of the pair. However, as in the first half of the day, the target of the bulls remains a large resistance of 1.2762, the breakthrough of which will provide good support to buyers, which will lead to an update of the highs in the area of 1.2800 and 1.2860, where I recommend taking the profits. In the downward correction scenario, you can look at the long positions in the pound on the false breakout from the support of 1.2723 or on the rebound from the low of 1.2687, where the lower limit of the upward channel passes.

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

Sellers of the pound will try to keep the pair above the resistance of 1.2762, as it was in the morning, but it will be quite difficult to do. Only the formation of a false breakout at this level will be a direct signal to open short positions based on a small downward correction to the support area of 1.2723 and 1.2687, where I recommend taking the profit. However, more interesting levels for selling GBP/USD today are seen at the highs of 1.2799 and 1.2858.

Indicator signals:

Moving Averages

Trading is conducted above 30 and 50 moving averages, which indicates the preservation of the bullish market.

Bollinger Bands

If the pound falls, the support will be provided by the lower limit of the indicator around 1.2723.

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