Trading plan for GBP/USD pair on October 27, 2021

The GBP/USD pair is testing the monthly average control zone for the fourth time this month. Yesterday, this led to an increase in supply again. Now, there is a 75% probability to further keep the pair below the level of 1.3828.

When a trading plan is being built, it is important to consider that the pair is trading in a flat. The upper border is the monthly volatility range of 1.3828, while the support is the Weekly Control Zone 1/4 of 1.3747-1.3739. Until the support zone is broken, it is necessary to continue trading around the flat, which was formed on October 19.

It should be noted that trading in a flat means searching for buy and sell patterns from the upper and lower borders. Therefore, the closing of today's trading outside the flat zone will indicate the priority for the next 5 days.

The upward movement is still a medium-term impulse, so going beyond the lower limit of the flat will simply expand the scope of the corrective movement. The probability of consolidating above the level of 1.3828 this month is only 25%.