GBP/USD: plan for the European session on January 28. The pound's growth is gradually slowing

To open long positions on GBP/USD you need:

Buyers work out levels perfectly, gradually continuing growth, which can be completed in the near future without the support of good news on Brexit. It is best to look closely at long positions today at the level of 1.3156, provided there is a false breakdown there, or at a rebound from the area of 1.3084, where the lower limit of the ascending channel passes. The main goal will be a breakthrough and consolidation above the high of 1.3233, which will maintain the upward trend to the level of 1.3291 and 1.3348, where I recommend to consolidate the profit.

To open short positions on GBP/USD you need:

Only another unsuccessful consolidation above the resistance of 1.3233 will be the first signal to open short positions on the pound with the main goal of breaking and consolidating below the area of 1.3156, which will lead to a sharper sale of the GBP/USD to the support area of 1.3084, where I recommend taking profits. In the scenario of further growth, against the background of good news on Brexit, short positions can be considered after updating the highs of 1.3291 and 1.3348.

Indicator signals:

Moving averages

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

Bollinger bands

In case the pound decreases, the lower limit of the Bollinger Bands indicator in the area of 1.3103 will act as a support. The pound's growth may be limited by the upper indicator line around 1.3240.

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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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