Control zones for GBPUSD on 07/22/19

Friday's test of the WCZ 1/2 1.2565-1.2549 gave the opportunity to go on sale. The pair is trading within the local accumulation zone, so the main goal of the fall is the minimum of the previous week. It is necessary to be careful when testing the WCZ 1/4 1.2473-1.2465, as there is a possibility of resuming growth, which will lead to a re-test of the WCZ 1/2.

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Purchases will require the formation of a pattern of "false breakout" of the Friday's minimum. If this happens, you need to close the sale and enter a long position. Estimated profit 90pp.

In order to continue to fall in GBPUSD, a breakdown with consolidation below the level of 1.2465 in the American session is required. This will keep sales to last week's minimum. This model is advantageous, and since there was no violation of the downward medium-term momentum, the probability of updating the monthly minimum is 70%.

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Daily CZ - daily control zone. The area formed by important data from the futures market, which change several times a year.

Weekly CZ - weekly control zone. The zone formed by important marks of the futures market, which change several times a year.

Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

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