GBPUSD - How to Trade

The price reached the resistance zone formed by 1.33000 and 1.33500 resistance levels. We get a bearish divergence which tells us about a possible trend reversal. RSI confirms that the market bounces from the resistance and probably we should be ready to see further falling. MACD and DMI support buyers and the market can try to break the resistance zone one more time. As a result, the price action at 1.33000 and 1.33500 levels will be important for us.

If the price breaks the resistance zone, it will confirm the continuation of the uptrend. But entry levels for buying will be far from the better zone at SMA50 and the main uptrend line. For buying, we will have to wait for a correction movement and buy only after getting reversal signals.

As for selling, the price is at the resistance and short positions here will be logical. We have the bearish divergence which can be used for open sell trades based on the daily timeframe, but I think there will be more interesting signals on lower timeframes. I suggest to use them with profit targets at 1.32000 level and SMA50 from the daily chart.