GBP / USD pair: plan for the American session on February 4. The pair remains in the region of a large support level

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

The situation in the GBP / USD pair has not changed compared with the morning forecast. Buyers of the British pound may resume an uptrend but this will require a breakdown of the middle of the channel in the area of 1.3104 with a fixation above the resistance of 1.3159. Only after this will the prospect of updating the highs in the region of 1.3214 and 1.3260 open, where I recommend taking profits. However, a larger upward movement will depend on negotiations between British Prime Minister Theresa May and EU representatives. In the case of a downward correction of the purchase for the pound, I recommend to do it only on the condition of a false breakdown around 1.3043 or for a rebound from 1.2971.

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

The bears did not wait for testing the resistance of 1.3104 in the morning and started selling the pound as they approached this range. However, the sellers target will be a breakthrough of support at 1.3043, which may lead to a further fall in GBP / USD with a rise to the lows of 1.2971 and 1.2894, where I recommend taking profits. In the case of a pound rising above 1.3104, it's best to take a closer look at short positions after updating the maximum in the area of 1.3159 or at a rebound from the level of 1.3214. Any news of the failure of negotiations between May and EU representatives could lead to a rapid fall in the pound.

More in the video forecast for February 4

Indicator signals:

Moving averages

Trade is conducted below the 30- and 50-day moving, which indicates a possible drop in the pound in the short term.

Bollinger bands

Bollinger Bands indicator volatility has decreased, which does not give signals on the market entry.

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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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