Probability of correction from 1.2560
07 November 2016, GBP/USD
Daily chart: the price has almost reached the upper Bollinger band (1.2550), which would give every chance of a correction, if not very active ADX that, in turn, can lead to impulse growth towards 1.3058.
Н4: the price is heavily overbought, which is likely to lead the downward correction from the upper Bollinger band (1.2562) in the direction of the middle band (1.2358)
Н1: another frame with very active ADX, so sales will be super-dangerous tactic. Although another corrective additional signal is also present: this is divergence of the oscillator. Support lines are at 1.2492 and 1.2437 (middle and lower Bollinger bands).
The main scenario - growth to 1.2562 and then a downward correction towards 1.2492, 1.2437 and an eye on 1.2358
The alternative scenario - breakthrough to 1.2700
Solutions: if there are short signals around 1.2562 - 1.2492, we should sell to 1.2492, 1.2437, 1.2358
Aleksey PanasenkoAnalyst of «FreshForex» company
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