Forecast for GBP/USD on January 28, 2019

GBP/USD

Against the background of the general weakening of the US dollar and the emerging progress in English political circles in adopting the May-EU Brexit agreement, the sterling rose by 134 points on Friday. The price has reached the lower limit of the target range 1.3216/57. On the four-hour chart, there is a weak sign of a reversal or correction. Probably, the pound will still try to rise slightly higher. The price has moved far enough away from the indicator lines, which indicates the duration of the upcoming hypothetical market reversal - before the medium-term decline of the pound there can be a long wide-range consolidation that fits into our concept of reducing the pound after the UK leaves the EU with the deal.

If the price leaves the range of 1.3216/57, multiple resistances open in front of it, the nearest ones being 1.3310, 1.3396. From any of them a local reversal is possible.

So, according to the technical picture, the price may slightly increase for the formation of reversal divergence with the Marlin indicator (H4).

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