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What is the goal of upward correction?

29 August 2016, GBP/USD

Daily chart: the pair is still moving inside the flat horizontal band formed within Bollinger envelopes (1.2872 - 1.3337, painted by yellow)

Н4: breakthrough of the bottom Bollinger envelope means a well-expressed bearish pattern, in which you can expect a pullback to the the middle Bollinger band (1.3194), where a new zone of supply of Pound can be met, and the price will drop towards 1.3000 again. The pattern Over&Under is around 1.3263, so we can not exclude such a high correction.

Н1:a better shaped resistance at the middle Bollinger band (1.3180). Oscillator and ADX are in a classic corrective configuration.

Expectations: Now we are waiting for a rollback to 1.3180 and then another drop to 1.31

Solutions: sell from 1.3180 to 1.31

Aleksey Panasenko
FreshForex Analyst
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