To open long positions on GBP / USD, you need:
Pound buyers, in order to maintain a further upward trend, need to stay above the support level of 1.2734, and the formation of a false breakout on it will be a good signal to open long positions, based on the repeated test of last December's maximum around 1.2808, where I recommend fixing the profits. In the case of a return under the support of 1.2734, it is best to return to long positions to rebound from the low of 1.2677.
To open short positions on GBP / USD, you need:
Sellers urgently need to return to the support level of 1.2734, which last year served an important role and limited the upward correction of the pound. In the case of a decline under the support of 1.2734, the bears will quickly return GBP / USD to a minimum area of 1.2677, where I recommend fixing the profits. Under the scenario of further growth of the pound, you can sell on the rebound from a maximum of 1.2808.
Indicator signals:
Moving Averages
Trade is slightly above the 30-day and 50-day moving average, with a short-term advantage of buyers of the British pound.
Bollinger bands
In the case of a decrease in the pound, support will be provided by the average Bollinger Bands indicator around 1.2734, from which you can open low positions. The upward trend may be limited by the upper limit of the channel 1.2808, from where pound sellers will return to the 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
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