Relevance up to 17:00 2020-01-30 UTC–8
To open long positions on GBPUSD, you need:
Another false breakout in the support area of 1.2990 in the first half of the day and a technical breakout of the key resistance of 1.3030, all this led to a sharp increase in the pound, which was supported by the decision of the Bank of England to leave interest rates unchanged, and even the 7 to 2 vote ratio did not change. At the moment, the bulls are confidently storming the level of 1.3102 and there are no hints of the end of the trend yet. The situation may be affected by the US GDP data, but it is unlikely that this will lead to drastic changes. Fixing above the resistance of 1.3102 will open a direct road to the highs of 1.3133 and 1.3172, where I recommend taking the profits. In the case of a downward correction, long positions can be watched if a false breakout is formed in the support area of 1.3065 or buy GBP/USD immediately for a rebound from a minimum of 1.3030.
To open short positions on GBPUSD, you need:
I do not recommend rushing to sell the pound today. There may be some technical correction down after a good report on the growth of the US economy from the level of 1.3102, but it is unlikely that the pressure on the pair will remain below the support of 1.3065, around which I recommend fixing the profits. In the scenario of further growth above the maximum of 1.3102, it is best to return to short positions on the rebound from 1.3133 and from the January level of 1.3172, from which the pound has been declining for the last 6 trading days. However, now we can safely say that the bearish trend is broken and major players are gradually returning to the market in the hope of maintaining the medium-term bullish trend.
Trading is conducted above the 30 and 50 daily averages, which indicates the continuation of the upward trend.
In the case of a downward correction scenario, the average border of the indicator around 1.3020 will provide support.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence – Moving Average Convergence / Divergence) Fast EMA Period 12. Slow EMA period 26. SMA Period 9
- Bollinger Bands (Bollinger Bands). Period 20
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Ruben Watson,
InstaForex Group © 2007-2020
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