Declining Market | 05 April 2017

05 April 2017, GBP/USD

Daily chart: scenario of declining towards middle Bollinger band (1.2375), so we expect middle band breakout.

Declining Market

Н4: there is consolidation within 1.2406-1.2549 range (Bollinger bands). Bullish inside bar from lower Bollinger band questions bearish ability to continue decline. However, ADX shows trending prices, so we may see sharp price shifts in both directions.

Declining Market

Н1: declining market is under protection of resistance levels at 1.2445 and 1.2483 (middle and upper Bollinger bands). Support level is at 1.2406 (lower Bollinger band).

Declining Market

Expectations:

Core scenario - decline to 1.2406 or even lower to 1.2375

Alternative scenario - rollback to 1.2483 followed by decline to 1.2406.

Trading signals: consider selling to 1.2406 and 1.2375 (the best entry point is 1.2483)

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Aleksey Panasenko
FreshForex Analyst
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