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

Buyers failed to continue the upward trend of the British pound, which was formed after yesterday's news from the leader of the Brexit party. I spoke about this in more detail in my morning forecast. Weak data on the UK labor market pushed the pound to the major support of 1.2827, which buyers are trying to hold. While trading is conducted above this range, there is a probability of continuing the upward correction of the pound and its return to today's highs of 1.2864, where I recommend taking the profits. A break of this range will open a direct path to the resistance of 1.2895. If buyers fail to hold the level of 1.2827 in the afternoon, it is best to return to long positions on the rebound from the support of 1.2799 or at a monthly minimum in the area of 1.2769.

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

Bullish optimism has dried up, and prolonged trading in the support area of 1.2827 indicates a clear lack of buyers of the pound at the current level. A break in this range in the afternoon will lead to a further decrease in GBP/USD and a return to the supports of 1.2799 and 1.2769, where I recommend taking the profits. However, it should be remembered that the pound will be more subject to fluctuations in the election news and the current technical picture will not always justify itself at such moments. In the case of GBP/USD growth in the North American session, you can count on short positions after the formation of a false breakdown in the resistance area of 1.2864 or sell the pound immediately on a rebound from the maximum of 1.2895.

Indicator signals:

Moving Averages

Trading is conducted around 30 and 50 daily averages, which indicates some market uncertainty with the advantage of buyers.

Bollinger Bands

The pair has already been supported by the lower border of the indicator around 1.2825, a breakthrough of which will lead to a larger sell-off. Growth will be limited to the upper level at 1.2870.

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