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A downward reversal

25 August 2016, GBP/USD

Daily chart: the pair is aimed toward the upper Bollinger band (1.3361), from where it is expected to bounce down. Although ADX is very close to the active trend zone, which may be interpreted in favor of buyers who may try to get beyond the top envelope.

Н4: a well expressed bearish divergence oscillator, but active ADX anticipates a downward reversal. Two resistance lines on the way of bulls - 1.3277 and 1.3361.

Н1: dense resistance 1.3277 and weak ADX. Support is at 1.3218

The main scenario - touch of 1.3277 and a downward reversal to 1.3218

The alternative scenario - surge to 1.3361

solutions: Looking for downward entry points around 1.3277 and 1.3361.

Aleksey Panasenko
FreshForex Analyst
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