To open long positions on GBP/USD pair, you need:
Inflation data led to an increase in the pound in the first half of the day, as well as fixing above the support of 1.2565. As long as trade will be conducted above this level, the demand for the pound will remain and the Fed report may allow continuing the upward correction in the area of resistance 1.2603 and 1.2649, where I recommend fixing the profit. In the case of a pound decline scenario in the second half of the day, it is best to return to long positions on a false breakdown from a minimum of 1.2539 or to a rebound from a larger support area of 1.2510.
To open short positions on GBP/USD pair, you need:
Bears will rely on the Fed and to maintain the same policy, which will return the pressure on the pound. The formation of a false breakdown in the area of resistance 1.2603 in the afternoon will be a signal to sell. The main goal of the bears will be to return to the support area of 1.2539 and update the minimum of 1.2513, where I recommend taking profits. Given the GBP/USD growth scenario, it is best to consider short positions on a rebound from a large high of 1.2649.
Indicator signals:
Moving averages
Trade is conducted above 30 and 50 moving averages, however, it is still very early to talk about a trend reversal.
Bollinger bands
In case of a pair decline, support will be provided by the lower limit of the indicator in the area of 1.2539.
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
