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.
We are constantly improving our website quality. If you have any suggestions on how to make our website better or noticed an error on the website, please tell us