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

The British pound strengthened its position against the US dollar, and buyers returned to the level of 1.2135, above which we can talk about the continuation of the upward correction in the pair. The meeting between the President of France and the Prime Minister of Great Britain was held on a positive note, which strengthened the hope for resolving the border issue of Northern Ireland. At the moment, while trading is above the range of 1.2135, the bulls will continue to push the pound up to the resistance area of 1.2176, the breakthrough of which can lead to a larger growth wave of GBP/USD with the update of the highs of 1.2217 and 1.2264, where I recommend taking the profit. If the euphoria from the meeting ends quickly, and the pair returns to the middle of the channel in the area of 1.2135, then in this scenario, it is best to open long positions on the rebound from the minimum of 1.2084.

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

The only thing left for the pound sellers is to rely on the return of GBP/USD to the level of 1.2135, as well as on a good report on manufacturing activity in the US, which will return demand for the American dollar and lead to a decrease in the pair to the lows of 1.2084 and 1.2044, where I recommend taking profits. If the media will continue to fuel interest in the problem of "backstop", hinting at its possible solution, the demand for the pound will remain. When breaking through the resistance of 1.2176, it is best to consider new short positions in GBP/USD for a rebound from the highs of 1.2217 and 1.2264.

Indicator signals:

Moving Averages

Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the market.

Bollinger Bands

If the pair decreases, support will be provided by the lower border of the indicator in the area of 1.2110.

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