Swing interpretation on the pound | 26 October 2015

26 October 2015, GBP/USD

The daily chart: a confident test of the inside bar continues, the potential for downward movement is still very high (zone 1.5106-1.5159)

H1: after three consecutive attempts of bulls to break the downtrend (see, 3 attempts of crossing up in the yellow zone), bears showed who's the boss in the house. At this stage, a pullback to 1.5350-1.5380 area seems appropriate, where a sell signal would have a very high chance of working out.

Expectations:

1) Rollback up from current levels to the 1.5350-1.5380 area, where we wait for a new strong swing down towards 1.5106-1.5159 2) Direct decline to 1.5106-1.5159 without a rollback up.

solutions: 1) We are waiting for a signal to sell in the event of a rollback up to zone 1.5350-1.5380. The goal is 1.5159, 1.5106

Aleksey Panasenko
FreshForex Analyst
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