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Preparation for Southern movement

13 October 2015, GBP/USD

The daily chart: the pair notably hesitated around the middle Bollinger band that may be a sign of beginning of a new decline to the bottom band (1.5040). Bollinger envelopes keep horizontal orientation, so growth to the upper band (1.5557) is also still relevant.

Н4: narrowing of the envelopes before impulse volatility. So far, everything looks exactly as preparation for Southern movement.

Н1: zone of 1.5322 may show a significant support - ADX is not yet ready for deeds.

Expectations: So, we wait for attack of the support 1.5322, which may for some time be ineffective, but with the breakdown below we get a strong aspiration towards 1.5040

solution : We sell either based on a breakdown of 1.5298 or a pullback up to the area of the hourly middle Bollinger band (1.5343). The objective is 1.5040, but it is unlikely that it can be reached in one day.

Aleksey Panasenko
Analyst of «FreshForex» company
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