An upward reversal
26 September 2016, GBP/USD
Daily chart: the price is moving in the direction of the lower Bollinger band (1.2918), but it is against low and correcting ADX, which may indicate the lack of potential to break below. So, we are waiting for an upward rebound in the direction of the middle band (1.3175)
Н4: northern scenario: the oscillator showed a clear bullish convergence, ADX is in the phase of the trend pressure. We are waiting for a breakthrough towards 1.3175 (through resistance zone at 1.3100 (upper Bollinger band)
Н1: at this local frame, resistance is around 1.3000 (middle Bollinger band), support is at 1.2914 (lower band) As you can see, under this frame, ADX shows no pressure, which leaves a room for another downward movement. The older frame prevails the younger one.
The main scenario - beginning of growth of the pair to 1.3087, 1.3100, 1.3175
The alternative scenario - touch of 1.3000, decline to 1.2914, and only then an upward move.
Trading solutions: look for entries in purchases to 1.3087, 1.3175
Aleksey PanasenkoAnalyst of «FreshForex» company
Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us