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plan for the European session on January 14. Commitment of Traders COT reports (analysis of yesterday’s deals). Buyers Madness

DATE OF PUBLICATION: 2021-01-14 08: 36: 39To open long positions in GBP / USD it is required: Yesterday signals to enter the market were formed only in the first half of the day. The American session did not lead to the formation of convenient entry points to the market. Let’s take a look at a 5 minute chart. You can see how several unsuccessful attempts of the bulls to get out above the resistance of 1.3701, which I drew attention to in my morning forecast, led to the formation of a signal to sell the pound. I marked the areas where the signal was generated and where it was confirmed. As a result, in the American session we reached the target value of 1.3649, which brought more than 50 points of profit. Those who were more stubborn could have tried to wait for the 1.3590 minimum to be updated, but we have not reached it yet, although the euro bears hit the pound buyers’ ambitions. The new task of the bulls is to regain control over the 1.3649 resistance. A breakout and test of this level from top to bottom may lead to the formation of a signal to buy the pound with the main target of a return to this year’s high at 1.3701. The next update of this level can lead to the demolition of a number of stop orders. This scenario will only spur the pound to a larger uptrend already in the area of ​​1.3750 and 1.3803, where I recommend taking profits. If after the resistance update of 1.3649 there are no active purchases, it is better not to rush with long positions. In this case, I recommend waiting for the pair’s downward correction already in the area of ​​the larger support 1.3590, from where you can open long positions immediately on a rebound with the aim of an upward correction of 30-35 points within the day. In the same place, the bears will try to build the lower boundary of the new ascending channel formed on January 11. To open short positions on GBP / USD, it is required: As long as the bears control the resistance of 1.3649, the pressure on the British pound will remain. All they need is another false breakout formation in the 1.3649 area, which will only increase the pressure on GBP / USD and lead to a decline to the area of ​​the large support 1.3590, where I recommend taking profits. The further target will be the low of 1.3547, which will become the defining one in the current downward correction of the pound. If the bears do not show any activity in the resistance area of ​​1.3649, and today in the first half of the day important fundamental data on the UK economy is not expected, then I recommend abandoning short positions until the pound returns to the resistance area 1.3701. However, only the formation of a false breakout there generates a signal to open short positions with the aim of a downward correction to the support area of ​​1.3649. I recommend that you familiarize yourself with my video forecast for today. Let me remind you that a slight decrease in interest was recorded in the COT reports (Commitment of Traders) for January 5 to the British pound, but this does not affect the overall picture. Long non-commercial positions decreased from 37,550 to 35,526. At the same time, short non-commercial positions remained practically unchanged and increased only from 31,518 to 31,861. As a result, the non-commercial net position, although it decreased, remained positive and amounted to 3,665 against 6,032 a week earlier. All this suggests that traders continue to bet on the strengthening of the pound, even in the face of the new Covid-19 strain, for which there is no vaccine yet. The demand for the pound is limited by quarantine measures in the UK, which will sooner or later be canceled after the stabilization of the infection situation. Additional stimulus from the Bank of England, which economists will soon be talking about, could also soften the uptrend in the pound somewhat. Indicator signals: Moving averages Trading is carried out just below 30 and 50 moving averages, which indicates an attempt by bears to take control of the market. Note: Period and the prices of moving averages are considered by the author on the hourly H1 chart and differs from the general definition of the classic daily moving averages on the daily chart D1. Bollinger Bands A breakout of the lower border of the indicator around 1.3610 will increase pressure on the pound. Growth will be limited by the upper level of the indicator in the 1.3680 area. Description of the indicators Moving average (moving average, determines the current trend by smoothing volatility and noise). Period 50. Marked in yellow on the chart. Moving average (moving average, determines the current trend by smoothing volatility and noise). Period 30. Marked in green on the chart. Indicator MACD (Moving Average Convergence / Divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9 Bollinger Bands. Period 20 Non-commercial traders – speculators, such as individual traders, hedge funds and large institutions that use the futures market for speculative purposes and meet certain requirements. Long non-commercial positions represent the total long open position of non-commercial traders. Short non-commercial positions represent the total short open position of non-commercial traders. The total non-commercial net position is the difference between short and long positions of non-commercial traders. Material provided by InstaForex – Source – InstaForex

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