To open long positions on the GBP / USD pair, you need:
Buyers tried to gain a foothold above the resistance in the area of 1.2614 but failed to do so in the morning. Good data on wage growth in the UK supported the pound. However, only a real breakthrough of the area of 1.2614 will lead to a further upward correction in the pound to the area of resistance 1.2662, where I recommend taking profits today. In the case of a decrease in the pound in the afternoon, long positions can be considered to rebound from the support area of 1.2569, below of which the sellers could not leave today.
To open short positions on the GBP / USD pair, you need:
The formation of a false breakdown in the area of resistance at 1.2614 was the first signal to sell the pound but to confirm the bearish signal requires a good report on producer prices in the US, which is scheduled for the second half of the day. The main purpose of the bears will be to return to the area of a large support level of 1.2569, where I recommend taking profits. In the case of growth of the pound, you can count on short positions from the resistance of 1.2662 and 1.2714.
Indicator signals:
Moving averages
Trade is conducted under the 30- and 50-day moving averages, which indicates a continued decline in the pound.
Bollinger bands
In the case of a decrease in the pound in the afternoon, long positions can be considered immediately to rebound from the middle border of the Bollinger Bands indicator around 1.2575, which acts as a support.
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
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