Yesterday's decline in the pair became natural, since on Friday there was an expiration of the option contract. Friday's compensation movement had a probability higher than 70%. Today GBPUSD is trading near the important WCZ 1/4 support zone 1.2677-1.2669. Until consolidation below this zone occurs, the likelihood of renewed growth is high.
Work in the flat phase implies purchases from the lower boundary after the formation of the "false breakdown" pattern and their partial consolidation at a high of June.
An alternative model will be developed if the current closing of the US session or the opening of the European occurs below the level of 1.2669. This will allow you to continue selling the tool. The downward movement is still a medium-term impulse, which allows you to keep sales open last week.
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