GBPUSD - How to Trade

The market could not develop an upward movement after bouncing from the trend line. We got a new swing high lower than the previous one. Based on it we can draw a new downtrend line which also will act as a signal line for confirming the buyers' strength. If the price can break this line and move above 1.33500 resistance level - the continuation of the uptrend will be confirmed. We will be able to use breakout signals for opening long positions based on the daily and hourly timeframes.

Now the price is at the uptrend line and SMA50 which form a support zone. The price action here will tell us about further market movements.
For confirmation the uptrend reversal the price will need to break the uptrend line. This breakout signal will be used for opening short positions. If the price moves lower and drops below 1.30000 support, it will give additional confirmation for further downward movement.

RSI is bearish, MACD supports the downward movement. DMI became bearish. Now we need to watch for ADX line. If it starts the upward movement and reaches 20 level at least, it will be a signal telling us that sellers become stronger. If so, searching for sell opportunities based on the daily and hourly timeframes will be a good idea.