Drop to 1.2331 | 30 March 2017

Daily chart: there is flat corridor inside Bollinger envelopes range (1.2084-1.2579). So we may expect decline continuation towards the nearest support level at 1.2331 (middle Bollinger band).

Н4: here lower Bollinger band is support level because of passive envelopes. ADX shows correction, so we may have price-taking and some pound demand in region of 1.2331-1.2363, which may trigger rollback to the upside.

Н1: here we are observing bearish flag pattern and bears are likely to start decline. Key support level is at 1.2407 (lower Bollinger band).

Expectations:

Core scenario - drop to 1.2331

Alternative scenario - flat in 1.2407-1.2457

Trading signals: consider entering short to 1.2331.