Bulls slowed down | 20 January 2017

20 January 2017, GBP/USD

Daily chart: ADX is correcting to the downside firmly, so break of upper Bollinger envelope (resistance at 1.2431) is not likely today. A drop towards lower band (1.2080) is more likely to start today.

Bulls slowed down

Н4: upper Bollinger band is edging higher than daily chart resistance, so there is a risk of upper Bollinger band break. However, ADX remains weak, so I suggest that we consider scenario of bouncing down to 1.2431

Bulls slowed down

Н1: much more localized resistance level is at 1.2353 (upper Bollinger band). It seems possible that this level will restrain the price (see red arrow). Alternative is moving to 1.2431 region (see blue arrow)

Bulls slowed down

Expectations:

Core scenario - touch in 1.2353 region and then slipping towards 1.2262

Alternative scenario - break to 1.2431 and the decline

Solutions: consider selling from 1.2353 or 1.2431 region (depending on the scenario)

Aleksey Panasenko
FreshForex Analyst
Agree with the review?
Traders' opinion:
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .
manager photo manager photo
Online-support
We will be pleased to answer any questions you may have

Write

Get bonus