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Monday's premarket view of the pound

05 September 2016, GBP/USD

Daily chart: ADX is growing, but is still far from the trend area, allowing bears to adjust the price up to the middle Bollinger band (1.3100)

Н4: a better shaped support at the middle Bollinger band (1.3186), from where buyers are expectec to take a 200-points' attempt of growth to 1.3381.

But there is an alternative view of the situation, because the oscillator is heavily overbought and has signs of divergence. ADX is also in the extreme area and a downward reversal is highly probable.

Н1: a local horizontal corridor 1.3247 - 1.3326. ADX is weak and declining, so this range is unlikely to be broken on Monday.

Expectations: flat 1.3247 - 1.3326

Solutions: trade within the corridor 1.3247 - 1.3326

Aleksey Panasenko
FreshForex Analyst
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