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.
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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