Looking for upward signals on decline

15 September 2016, GBP/USD

Daily chart: yesterday the middle Bollinger band kept downward correction and now Bollinger bands and thus the trading range are getting more narrow. ADX is going though correction, so consolidation is likely to be continued for some time.

Н4: downward movement is going to be expressed more: resistance 1.3251 (middle Bollinger band) showed inside bearish bar that allows us expecting a drop to 1.3150 (bottom band)

Н1: intermediate support 1.3224 (middle Bollinger band) will also have some potential for an upward bounce. But there was no breakthrough of the upper envelope, therefore, the prices is expected to get lower to1.3158 (bottom Bollinger band)

The main scenario - decline to 1.3158 and followed by an upward bounce to 1.3224

The alternative scenario - an upward bounce from support 1.3224 to 1.3289 Solutions: look for upward signals on the levels 1.3224 and 1.3158

Aleksey Panasenko
FreshForex Analyst
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