Wait and See Price Reaction on Resistance at 1.2444 | 20 3月 2017

20 3月 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.

Wait and See Price Reaction on Resistance at 1.2444

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.

Wait and See Price Reaction on Resistance at 1.2444

Н1: here ADX indicator still shows active trend, which matches expectations of continuing rise to 1.2444 region.

Wait and See Price Reaction on Resistance at 1.2444

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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Aleksey Panasenko
FreshForex公司的分析员
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