Limited growth potential
13 September 2016, GBP/USD
Daily chart: the pair is aimed at the upper Bollinger band (1.3454), but the movement is very weak, and a downward ADX is going through correction. This means that, most likely, the price will not leave the upper envelope (1.3200 - 1.3454), as the potential for a breakthrough is not enough.
Н4: a better shaped resistance level - 1.3374 (upper Bollinger band). ADX has non-trend status. Support is even better shaped - 1.3245.
Н1: at this local frame, the pair is heavily overbought. Thus, resistance area 1.3349 - 1.3374, most likely will make the price bounce down after a test.
The main scenario - growth to 1.3349 - 1.3374, and then a downward correction to 1.3291
The alternative scenario - surge to 1.3454
1. When we have short signal around 1.3349 -1.3374, we should sell to 1.3291
2. Aggressive bulls may try to test their luck under the alternative option (purchases targeting 1.3454)
Aleksey PanasenkoAnalyst of «FreshForex» company
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