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

Trading remained in a narrow side channel in the morning, and the inflation forecast in the UK allowed the bulls to get above the middle of the channel of 1.2705. While trading over this range, the demand for GBP/USD will remain, which may lead to an update of the maximum of 1.2739. However, going beyond this range will be possible only after a weak report on the US labor market, which is expected in the afternoon. The breakout of 1.2739 will lead to the level of 1.2770 and 1.2800, where I recommend fixing the profit. In the downside scenario, support will be provided at 1.2668 and 1.2644.

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

Sellers of the pound will expect a return to the level of 1.2705, which will increase the pressure on the pair and lead to a decrease in the support area of 1.2668, and then to an update of the minimum of 1.2644, where I recommend taking the profits. If the demand for the pound continues after the report on the US labor market, it is best to open short positions on a false breakout from the resistance of 1.2739 or on a rebound from a larger maximum of 1.2770.

Indicator signals:

Moving Averages

Trading is conducted above 30 and 50 moving averages, which indicates an attempt of bulls to build a new upward trend.

Bollinger Bands

The breakthrough of the upper limit of the indicator leaves the market on the side of the pound buyers.

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