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Two possible southern scenarios

10 November 2015, GBP/USD

Daily chart: strong bullish IB lets buyers to rely on the correction up. But widening of envelopes and the ADX’s activity are not on the buyers’ side. Strong resistance zones — 1.5195 и 1.5327. From one of it a bearish pressure is very possible to continue.

Two possible southern scenarios

Н4: local support is on 1.4938 (bottom Bollinger band). We verify resistance on 1.5195 (middle band).

Two possible southern scenarios

Н1: here is a double situation. Bulls conduct a correction on the active ADX, and, thus, its indication can be brought to both bullish and bearish sides. The clearness, I guess. will be brought by the reaction to the resistance 1.5130 (upper Bollinger band): if it will be broken — wait for the finished 1.5195, if not — the decline will be initiated right from the current zone.

Two possible southern scenarios

Expectations: The main scenario: decline from the current levels to 1.4938 The Alternative scenario: growth to 1.5195 and the beginning of decline to 1.4938 from there. Trading solutions: 1) Sales according to the main scenario with stops above 1.5130 2) Sales from 1.5195 according to the alternative one. 3) We can try to buy with breakthrough 1.5130 to 1.5195 inside the day.

Aleksey Panasenko
Analyst of «FreshForex» company
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