FX.co ★ Trading forecast GBP/USD 28.01.2018

Previously, the weakening of the dollar continued the entire week which allowed the exchange rates to increase relative to it. The British pound was no exception and was able to update again the annual highs.

Medium-term plan.

In the second half of last week, there was a sharp rate decline to the weekly short-term 1.4089-1.4064, which made it possible to form a correctional pattern. The downturn stopped on the margin zone which indicates a re-hedging of players who bought at prices of 1.4300 and above. To break the upward structure, one of the American sessions is required to close below the 1.4064 level, otherwise, the growth will continue and the annual highs will be renewed again.

With the implementation of the reversal pattern indicates that the GBP/USD pair went beyond the monthly control zone (KZ) of January 1.3928-1.3874. The corresponding exits beyond the limits of monthly volatility and 90% of cases lead to the formation of recurrent movements. This should be taken into account when searching for favorable prices for the sale of the instrument.

Intraday plan.

At the end of last week, the reversal model was formed which allowed testing the weekly short-term at 1.4089-1.4064 and formed from the monthly highs. Several attempts to absorb the downward movement is far from any success. In terms of growth, the NKZ 1/2 moved up to 1.4222-1.4210. While the pair is trading below this zone and the US session closes below it, the downward formation remains a priority. The initial target of the decline is the weekly KZ, as discussed above, and the goal to return to the monthly KZ of January.

Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.

Weekly CP is the weekly control zone. The zone formed by important futures market marks, which change several times a year.

Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.

* The presented market analysis is informative and does not constitute a guide to the transaction.