The decline last week occurred after the pair re-tested the bank compilation zone. This indicates the operations aimed at reducing the rate of the British pound.
Yesterday's compilation occurred near the June extremum, which can serve as a starting point for both the continuation of the fall and for the formation of a mid-term reversal pattern. The closing of US session yesterday occurred below the compilation zone, indicating a top-down priority. Maintaining the price within the zone or below will give an opportunity to look for sales again, and its initial target will be the July low.
Testing the June low led to an increase in demand, which indicates the presence of limit orders and the interest of large players. To confirm a downward impulse, the closing of American session today should be below the banking zone.
To form the reversal pattern, traders need to close the American session today above the bank compilation zone. This will allow players to search for purchases until the next Wednesday. The first target of growth will be the compilation zone of last week, where the probability of a large offer will increase again. Today, considering purchases is difficult because there is no confirmation, so it's better to wait for the trading close today. The range to the previous compilation zone is large enough, so the size of the stop might change and does not depend on today's traffic.
Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
* The presented market analysis is informative and does not constitute a guide to the transaction.
The material has been provided by InstaForex Company - www.instaforex.com