Touch of lows and correction | 20 December 2016

20 December 2016, GBP/USD

Daily chart: bullish inside bar didn't fulfill expectations and now the pair appears to be determined to touch lower Bollinger band (1.2322), from there we expect to see upward shift, because ADX doesn't react in any way to the current moves (yet). Stable Bollinger envelopes also call for such a scenario.

Touch of lows and correction

Н4: Bearish mood still prevails. This is shown by momentum of price movement, by aggressive ADX and by untouched lower Bollinger band, which is situated below the previous low.

Touch of lows and correction

Н1: locally the support level is in 1.2356 (lower Bollinger band). However, again because of strong ADX, this support level might be under pressure soon.

Touch of lows and correction

Expectations: we expect a decline to 1.2356 and later upward reversal towards 1.2436. As an alternative, we consider decline to 22 number.

Solutions: find possible upward entry points around 1.2356.

Aleksey Panasenko
FreshForex Analyst
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