GBP / USD: plan for the European session on January 25. The pound continues to strengthen the position on the expectations

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

The Brexit news is over, but many players are putting on a postponement for the UK to leave the EU, which will allow the pound to gradually strengthen its position. The next signal for continued growth will be the breakdown and consolidation above the resistance of 1.3133, which will lead to a test of new monthly highs around 1.3186 and 1.3233, where I recommend fixing the profits. In the case of GBP / USD decline in the first half of the day, long positions can be viewed at a false breakdown in the area of 1.3074 or at a rebound from the support of 1.3013.

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

Only another unsuccessful fixing above the resistance of 1.3133 will be the first signal to open short positions on the pound with the main goal of breaking and fixing below the area of 1.3074, which will lead to a larger GBP / USD sale to yesterday's support area of 1.3013, where I recommend fixing the profits. When scenarios for further growth, against the background of news on Brexit, consider short positions after updating the highs of 1.3186 and 1.3233.

More details about the forecast can be found in the video review.

Indicator signals:

Moving Averages

Trading takes place above the 30-day and 50-day moving, which indicates the bullish nature of the market.

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Bollinger bands

In the case of a decrease in the pound, the lower limit of the Bollinger Bands indicator in the 1.3000 area will act as support. The break of the upper border of the indicator near 1.3150 will allow the bulls to continue to strengthen the pound.

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
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