Trading plan for 15/01/2018

Sentiment in Asia on Tuesday is improving, because this time information from China is among the good ones. Beijing has signaled new support measures for the economy. The stock market shines green, bu the currency market JPY is loosing and AUD and NZD are strong.

On Tuesday, the 15th of January, the key event of the day is the UK is the Brexit decision vote in the House of Commons that will affect the Pound this way or another. Other interesting data are Spanish CPI, US PPI data and Eurozone Current Account data. There is a speech from Mario Draghi scheduled at 10:30 am GMT as well.

GBP/USD analysis for 15/01/2019:

On Tuesday, the parliament votes on adopting the Brexit agreement project and all indicate that the government plan will be rejected. Then the government will have 3 days to work out a plan B with the risk of a vote of no confidence submitted by the Labor Party, the creation of a referendum and the postponement of the Brexit date (March 29). However the chances of Brexit are decreasing without agreed terms, it is hard to expect a pound appreciation in the face of a political muddle.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market is trading just below the technical resistance at the level of 1.2928 which is a local high as well. In the case of an extended rally, the next target is seen at the level of 1.3000, which will act as a magnet for the price. On the other hand, any failure to break out above the local high will likely result in a down move towards the technical support at the level of 1.2839 - 1.2795. If this support zone is violated, then the next support is seen at the level of 1.2705.

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