GBP/USD: plan for the US session on January 31. The pound increased to the upper border of the medium-term triangle and collapsed

By | January 31, 2020
InstaForex
GBP/USD: plan for the US session on January 31

To open long positions on GBPUSD, you need:

Back in the morning review, I paid attention to the breakout of the resistance of 1.3102 and the level of 1.3133, where I recommended taking profits and opening short positions. This is what happened, and the presence of large sellers in the area of the upper border of the triangle was confirmed. At the moment, the bulls need to hold the level of 1.3102, which has already been tested as support, or even better, try to close the day above the area of 1.3133, which can trigger a new wave of euro purchases in the area of the highs of 1.3172 and 1.3227 at the beginning of next week, where I recommend taking the profits. If the GBP/USD falls below the support of 1.3102 in the second half of the day, the scenario of closing long positions may work. Therefore, in this case, you can only buy the pound from the lows of 1.3065 and 1.3030.

To open short positions on GBPUSD, you need:

Sellers did not fight for the resistance of 1.3102 but declared themselves in the area of 1.3133, which I paid attention to in the morning. At the moment, the test of support for 1.3102 has taken place, but the bulls have so far rebuffed. The key task of the bears for the second half of the day will be the return of GBP/USD under the support of 1.3102, which will quickly push the pound to the area of the lows of 1.3065 and 1.3030, where I recommend fixing the profits. Also, we should not forget about the resistance of 1.3133, since its breakdown can lead to a large wave of growth. In this case, it is best to look for new short positions after the resistance update of 1.3172, or even higher, from the maximum of 1.3227.

Indicator signals:

Moving Averages

Trading is conducted above the 30 and 50 daily averages, which indicates the continuation of the upward trend.

Bollinger Bands

If the average indicator border breaks, the pound will be supported by the lower level at 1.3070. Breaking the upper limit at 1.3133 will lead to a new wave of growth.

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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,
Analytical expert
InstaForex Group © 2007-2020

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