31.01.202008:16 Forex Analysis & Reviews: GBP/USD: plan for the European session on January 31. Pound continues to knock at 1.3102 resistance. Do not expect a strong bullish momentum to persist at the end of the week

To open long positions on GBP/USD you need:

From a technical point of view, after yesterday's sharp increase in the pound, which was based on the Bank of England's decision to leave interest rates unchanged, even the 7 to 2 ratio did not change, nothing happened. Buyers also continue to knock on the 1.3102 resistance, but there is no need to talk about maintaining a strong upside potential. It may well turn out that after the breakout of 1.3102 in the first half of the day, only yesterday's high will be updated, on which everything will end. Therefore, you need to open long positions for the breakout at 1.3102 very carefully and with a short stop. Only a real consolidation above the resistance of 1.3102, with a trade at this level, will open a direct path to the highs of 1.3133 and 1.3172, where I recommend taking profits. A more optimal scenario for GBP/USD purchases will be implemented after a downward correction and the formation of a false breakout in the support area of 1.3065. But I recommend buying GBP/USD immediately for a rebound only from a low of 1.3030.

To open short positions on GBP/USD you need:

I do not recommend rushing to sell the pound today. It is best to wait for a false breakout in the resistance area of 1.3102 and see how the pair will behave after updating yesterday's highs. Failure to consolidate and return to 1.3102 will be the first signal to open short positions in the calculation of a technical correction down to a support level of 1.3065, near which I recommend taking profits. In the event of further growth above the high of 1.3102, it is best to go back to short positions to rebound from 1.3133 and from the January level of 1.3172, from which the pound has been falling for the last six trading days. Pay attention to the daily chart that the upper boundary of the triangle passes in the area of 1.3133, which can determine the further medium-term direction of the pair. Therefore, the bears will not give up this level so easily.

Signals of indicators:

Moving averages

Trade is conducted above 30 and 50 moving averages, which indicates that the pound could continue growth.

Bollinger bands

Growth will be limited by the upper level of the indicator in the region of 1.3127, and support, in the event of a fall, will be provided by the lower boundary of the indicator in the region of 1.3045.

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