The commencement of today's trading in the European session will be the basis for creating a trading plan for the week. The GBP/USD pair is currently trading above the WCZ 1/2 1.2938-1.2914, making it possible to hold purchases that were opened last week. A new opening of long positions will be possible after today's closing occurs above the maximum of last week. This will make the growth model promising in the medium term. The target of the upward movement will be the weekly control zone 1.3202-1.3154. The probability of reaching this zone will increase to 75%.
The formation of an accumulation zone has been very evident over the past three weeks. An exit and consolidation above this area will indicate the direction for the entire current month, so purchases opened last week may become medium-term. They must be moved to breakeven and leave a part, in case of a growth to the September maximum. This will allow us to take up to 500 points of profit and compensate for the fall of the previous month.
In order for the flat formation to resume, it will be necessary to hold the maximum of the previous week and form the engulfing pattern during its retest. This will indicate the need to search for favorable sales prices. Continuing to work in the flat requires you to look for sales from the upper border with fixing transactions at the lower border. This model has not lost its relevance yet. However, its probability is below 50%, which requires confirmation.
The material has been provided by InstaForex Company - www.instaforex.com