Flat with Northern outlook | 28 March 2016
28 March 2016, GBP/USD
Daily chart: the pair in the middle of the horizontal range within the Bollinger envelopes (1.3890-1.4501). Upon that, bulls have a significant advantage in the form of very active ADX, as well as a massive bullish convergence of the oscillator. So I would warn traders against short trades.
Н4: local support at 1.4062 (the bottom Bollinger band), ADX which is going through correction – we can consider upward signals in this area.
Н1: clearly flat range 1.4110-1.4144. The pair will either spend a day within the corridor or “pierce” support 1.4062.
Expectations:
The main scenario - flat 1.4110-1.14144
The alternative scenario - “pierce” of 1.4062 and then an upward bounce
Trading solutions: there is no place for trading within the flat , so you can place a Buy limit order around 1.4062. based on the alternative plan.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
