11 October 2016, GBP/USD
Daily chart: the day was closed with the bearish inside bar that, against trend activity of ADX, means willingness of sellers for a new attack with an eye to 1.20 or lower in the medium term. Thus, the pair is heavily oversold, so it will not do without correction.
Н4: local resistance is 1.2525 (middle Bollinger band). Support is at 1.2231 (lower band), but it is likely to be under a load, because ADX is very strong. However, this chart shows that the pair is heavily oversold.
Н1: at this local frame the pair is consolidated within a horizontal range of 1.2342-1.2436 (Bollinger envelopes). Today, perhaps, trading inside this corridor will continue, as ADX within this frame is weak and correcting.
The main scenario - flat within the range of 1.2342-1.2436
The alternative scenario - decline towards 1.2231
Solutions: search for downward signals to 1.2436.
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