Work on the pair is still going in the direction of weakening the British pound, however, the demand received at the end of last week may lead to the formation of a deep correction or a reversal of the bearish momentum. The main plan is to find favorable prices for selling. The first resistance is the WCZ 1/4 1.2970-1.2961. Stopping growth in this area will provide an opportunity to entry into sales.
While the pair is trading below the level of 1.2970, there is no need to consider the formation of complex correctional models, since the emergence of proposals will be a natural development of the downward movement.
In order to break the bearish impulse, today's trading above the level of 1.2970 is required. This will make it possible for you to consider purchases tomorrow. The growth target will be the WCZ 1/2 1.3057-1.3076, where you will need to lock in purchases that are open on Friday or at prices higher than the current ones. Frequent purchases from last week should be transferred to breakeven in case of continued growth.
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