To open long positions on the GBP / USD pair, you need:
The situation has not changed in comparison with the morning forecast. British pound buyers may resume an uptrend but this will require a breakdown of the resistance at 1.3135. Only after the prospect of updating the highs of 1.3214 and 1.3260 will 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, I recommend buying the pound only if there is a false breakdown around 1.3053 or for a rebound from 1.2971.
To open short positions on the GBP / USD pair, you need:
The failure to consolidate above resistance 1.3135, which was observed in the first half of the day, led to an attempt to resume the downward movement in the pound, and as long as trading continues below this range, sellers will expect to return to the support area 1.3053, a breakthrough that could lead to a further drop in GBP USD with a minimum of 1.2971 and 1.2894, where I recommend to take profits. In the case of a pound rising above 1.3135, it is best to look at short positions after updating the highs of the month at 1.3260 and 1.3348. Any news of the failure of negotiations between May and EU representatives could lead to a rapid fall in the pound.
More details in the video forecast for January 31
Indicator signals:
Moving averages
Trade has moved to the area of 30-day and 50-day moving, which indicates the lateral nature of the market.
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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