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Looking for downward entries

10 October 2016, GBP/USD

Daily chart: on Friday markets could not recover after a 1000-points' shock. Bears finished the day and the week by a breakdown of the lower Bollinger envelope against overactive ADX, which may indicate continuation of collapse of pound.

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Н4: resistance is at the middle Bollinger band (1.2628), but we should not buy on correction, because here we have active trend ADX and the price is heavily oversold, but there is some probability of finalization of 1.2628 before the price would continuing falling.

Н1: Bollinger envelopes are extremely narrow, anticipating a new volatility momentum. The range of possible trading is 1.2343 - 1.2485.

The main scenario - trading inside the corridor 1.2343-1.2485 and then a new drop to the 22th figure

The alternative scenario - a direct drop without correction. Goals are a big question, therefore, they should be based on your own expectations, signals of trading systems and degree of greed.

Solutions: look for downward entries

Aleksey Panasenko
FreshForex Analyst
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