Looking for buying options around 1.30
19 September 2016, GBP/USD
Daily chart: the price has reached the bottom wall of the horizontal flat channel 1.2996 - 1.3423, so we can assume that the rebound will happen, especially since ADX is still passive (whereas growth of ADX is required to break important support lines).
Н4: here the price is heavily oversold and ADX is corrective, so here we can conclude about rebound from around 1.2996 (wherel the psychological level 1.30 can be found)
Н1: potential of decline is even around 1.2943 (the bottom Bollinger band) . But we must not forget that increasing of the bottom Bollinger band is a dynamic level of support (not static), so it is likely that it will rise higher.
The main scenario - touch of 1.2996 and then rebound to 1.3062
The alternative scenario - decline to 1.2943 and then an upward bounce to 1.3062
Trading solutions: look for buy signals around 1.2996 and 1.2943.
Aleksey PanasenkoAnalyst of «FreshForex» company
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