GBP / USD pair: plan for the American session on January 16. Traders don't know what to do after Brexit fails

To open long positions on the GBP / USD pair, you need:

As I think you all already know, the British Parliament voted against the Brexit agreement, which was quite expected. Today's inflation data in the UK, which coincided with the forecasts of economists, also did not allow to determine the future direction of the pound. It is best to purchase GBP/USD after the formation of a false breakdown in the area of 1.2812 or rebound from support 1.2743. The main objective remains a breakthrough above the resistance of 1.2883, which will resume the upward trend and will allow reaching the highs of 1.2964 and 1.3016.

To open short positions on the GBP / USD pair, you need:

An unsuccessful consolidation above the resistance of 1.2883 will be the first signal in opening short positions in a pound. Yet, the main task will be the breakdown and consolidation under the support of 1.2812, which will collapse GBP/USD to the minimums of 1.2743 and 1.2672, where I recommend to fix profits. In the case of a further uptrend after the release of bad data on the US economy in the afternoon, it is best to consider short positions from the new highs of 1.2964 and 1.3016.

Indicator signals:

Moving averages

Trade returned to the area of 30- and 50-day moving, which indicates the lateral nature of the market.

Bollinger bands

Volatility remains low, which does not give signals to enter the market.

More in the video forecast for January 16


Description of indicators

MA (moving average) 50 days - yellow

MA (moving average) 30 days - green

MACD: fast EMA 12, slow EMA 26, SMA 9

Bollinger Bands 20

The material has been provided by InstaForex Company -