Consider selling after upward correction finished | 16 January 2017

16 January 2017, GBP/USD

Daily chart: Monday was opened with substential gap (there is automatic breaking of lower Bollinger envelope), it is logical to expect rollback to middle band (1.2265). From there one might consider selling to force the pair to the new lows

Consider selling after upward correction finished

Н4: there is quite the same situation. Moreover, we can observe local bearish Over&Under pattern at 1.2265. That creates additional signals for rollback to this area.

Consider selling after upward correction finished

Н1: strong resistance level of 1.2169 (middle Bollinger band) may stop correction. However, 1.2265 is attractive, so the pair is quite likely to shift to this level.

Consider selling after upward correction finished

Expectations: we would wait for correction to the upside towards 1.2265. From this area the pair is likely later to decline towards 1.1950 (extra day)

Solutions:

1. Consider buying towards 1.2265

2. Consider selling from 1.2265

Aleksey Panasenko
FreshForex Analyst
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