07 October 2016, GBP/USD
Daily chart: What happened today was not entirely unexpected - Southern accumulation of potential was well-expressed and strong. The surprise is only about the depth. I would like to congratulate bears, who were expecting profit by the New Year, but got it earlier this morning.
Н4: a rollback bullish inside bar can get the pair corrected to the middle Bollinger band (1.2691), from where the price will continue to decline, warmed by NPF.
Н1: a big gap between resistance lines - 1.2564 and 1.2691. This will make search for downward entry points a very nervous activity. So today you may take a rest and observe what is happening from the side.
The main scenario - a rollback to 1.2691, then new decline to 1.23
The alternative scenario - a less steep pullback (to 1.2564) and then workout of a new drop to 1.23 and below .
Trading solutions: looking for downward entry points to 1.2564 and 1.2691.