20 March 2017, GBP/USD
Daily chart: the pair entered upper Bollinger envelope and now aims at 1.2575 (upper Bollinger band). ADX shows weakening trend, so we are not likely to see steady and continuous growth.
Н4: ADX is close to its extreme. Bulls have two resistance levels on their way at 1.2444 and 1.2575. One of these resistance levels is likely to send the pair back down. So both bulls and bears should wait and see how the price would behave around 1.2444.
Н1: here ADX indicator still shows active trend, which matches expectations of continuing rise to 1.2444 region.
Expectations:
Core scenario - rise to 1.2444 region followed by drop to 1.2368 region
Alternative scenario - upward breakout of 1.2444 followed by rise towards 1.2575.
Solutions:
1. Consider buying to 1.2444 (aggressive buyers may try to hold trades up to 1.2575)
2. In case of sell signals in 1.2444 region, consider selling to 1.2368.
3. Consider setting sell limit orders in 1.2575 region.
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