Control zones GBPUSD 01/21/19

On Friday, the formation of the absorption pattern at the daily level. The pair went beyond the monthly short-circuit of January, which defines its priority direction as descending.

A further decline in the pair is more likely, since the closure of the US session on Friday occurred below the NKZ 1/4 1.2904-1.2894. The main goal and strong support will be the NKZ 1/2 1.2808-1.2789. While the pair is trading above the specified zone, the upward movement remains a medium-term impulse, but buying the instrument from the current levels is not profitable. On the way of growth, the monthly short-circuit of January will again act as a strong resistance.

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In the first half of the week, it is possible to form a local accumulation zone in case the pair fails to overcome the NKZ 1/2. This will allow to start work in the flat phase, where the extremes of the previous week take the first place.

To break the upward mid-term impulse, it will be necessary to close today's US session below 1.2789. If this happens, the priority will be replaced with a downward one, and the target will be the weekly short-circuit fault 1.2616-1.2587. It is important to understand that a short position, opened today or tomorrow, can be displayed in the middle term only if the NKZ 1/2 is broken. Otherwise, operation in the pulsed phase will be impossible.

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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