Control zones GBPUSD 12/17/18

Last week, the pair was quite volatile and was able to overcome the average value of the move three times in the flat range. This indicates the formation of a significant accumulation zone, where the main levels will be the previous week's extremes.

At the beginning of this week, the pair is trading in the middle of the flat range. Buying and selling from the current levels does not look profitable. This suggests the need to search for more favorable prices. The determining resistance is NKZ 1/2 1.2689-1.2670. The achievement of that zone had already taken place last week and had led to a major proposal. In case of a repeated test, it is necessary to consider the formation of a false breakdown pattern as an excuse to open sales for those who do not have them yet.

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You can continue to work in the flat until one of the US sessions closes above the level of 1.2689. Work within the range implies partial fixation of purchases and sales on significant control zones.

All conditions have already been created for the continuation of the downward movement. If the pair continues to trade below the NKZ 1/2, the probability of the December low update will be 70%. This should be used when holding a short position. You can try to transfer part of sales to the average period and bring it to breakeven. Do not forget that the decline of last week was stopped at the middle course, however, this week this range is lower, which can form the conditions for the continuation of the fall.

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Day short - daily control zone. The zone formed by important data from the futures market, which change several times a year.

Weekly KZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.

Monthly KZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

The material has been provided by InstaForex Company - www.instaforex.com