Control zones of GBP / USD pair 01/14/19

Last week, the upward movement continued the bullish medium-term impetus and allowed us to get closer to the upper monthly short-circuit of January. This suggests the appearance of a major proposal in the near future.

The price movement on Friday had a correction to 1/4 CZ of 1.2707-1.2698 allowed to enter the purchases, the purpose of which was the monthly CZ of January. The implementation of the impulse bullish pattern occurred over two sessions, indicating the strength of market buyers. The test of the monthly fault has not yet occurred, however, the update of last week's maximum may lead to this event. When implementing this model, you will need to close all long positions and search for a pattern to sell an instrument.

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Friday's closure of trading occurred above the weekly CZ of 1.2819-1.2781, which indicates a high probability of continued growth to the next significant resistance of the 1/2 CZ at 1.3031-1.3012.

A continuous growth will require retention of the pair above the decisive support, which is the 1/2 CZ 1/2 1.2673-1.2654. As long as the zone remains unreachable, the probability of updating the January maximum is 70%. This should be considered when building daily trading plans. Working in the opposite direction will begin no sooner than the pair can break through and gain a foothold in one of the US sessions below one of the lower control zones.

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Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.

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

Monthly fault - 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