Key support - 1.5282

28 October 2015, GBP/USD

The daily chart: there is an attempt to bring the pair the bottom Bollinger envelope (to 1.5089) and, given the horizontal position of the envelope, it seems to be a more likely event than a rebound and growth to the upper band (1.5535, blue arrow). Nevertheless, news can make its own adjustments, so we need to proceed from both options.

Н4: there is support in the 1.5282 area, plus there are some signs of convergence and oversoldness of the oscillator. This is the bullish argument. However, the pound is not expected above 1.5424 (even though it would create a reversal O&U for buyers).

Н1: we also confirm the support on 1.5282. Local resistance is located at the middle Bollinger band (1.5328), but it is unlikely to hold the pair (in the case of negative news for the US dollar)

Expectations: 1) The main scenario - touch of zone 1.5282 and rising to 1.5328, 1.5424. 2) Breakdown of support 1.5282 and decline to 1.5089

solutions: 1) Either skip this day (until stability and predictability of the chart returns), or try to "buy support" 1.5282 (with small stops for sale to 1.5089).

Aleksey Panasenko
FreshForex Analyst
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