Control zones GBPUSD 08/20/19

Today's plan is to bring purchases previously opened to WCZ 1/2 1.2199-1.2182. When testing the zone, consolidating part of the position will be required, and the rest should be brought to breakeven. The main pattern for entering the position will be the "false breakdown" of yesterday's high after the WCZ 1/2 test. If this happens, you must completely eliminate the purchase and enter a short position. The potential fall can reach a monthly low.

Work in the upward direction is still a priority. Until WCZ 1/2 has been tested, another entry into purchases is possible in case of a "false breakdown" of yesterday's low. If this happens, there will be an opportunity to enter with a favorable risk to profit ratio.

An alternative model will be developed if the pair overcomes the WCZ 1/2, and the closure of today's US session occurs above the zone. This will indicate the completion of the downward medium-term cycle and the transition to the phase of the upward impulse.

Daily CZ - daily control zone. The area formed by important data from the futures market, which change several times a year.

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

Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.

Analysis are provided by InstaForex