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Is it a trap or a chance for buyers?

Is it a trap or a chance for buyers? | 26 December 2016

26 December 2016, GBP/USD

Daily chart: there is a very active bearish ADX, but before yesterday's closing bulls managed to make a pinbar from lower Bollinger band, that gives them technical opportunities to go towards middle Bollinger band (1.2512). However, considering such an aggressive ADX, it could be a trap for bulls.

Is it a trap or a chance for buyers?

Н4: a nice bullish inside bar is a sign of moving towards resistance levels 1.2328 and 1.2407 (middle and upper Bollinger bands respectively). However, here ADX moves counter price and oscillator growth, so up movement can be considered as correctional.

Is it a trap or a chance for buyers?

Н1: locally we note that there are favorable conditions for growth - active bullish ADX. A target is 1.2407. However, there is a strong level 1.2328, which can stop further growth. Besides, bullish Over&Under pattern with 1.2269 entry point will be already shaped.

Is it a trap or a chance for buyers?

Expectations: we expect growth towards 1.2328 or eve towards 1.2407

Solutions: buy around 1.2328 or even around 1.2407

Aleksey Panasenko
FreshForex Analyst
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