Forex Technical Analysis: Trend potential – Trend Shaping

GBPUSD – FlatDaily chart: horizontal corridor is within Bollinger envelopes (1.2177-1.2642). With weak and corrective ADX it is better to eliminate the possibility of breakthroughs. Н4: local resistance in the range of upper Bollinger band (1.2489), support is on the lower line (1.2384). We expect this corridor to be preserved. Н1:ADX is rising and there might be a breakthrough of upper Bollinger envelope. However, ADX parameters have not reached trend yet, that’s why rollback from resistance level of 1.2489 to 1.2451 (middle Bollinger band) is possible, following which bulls might try to force it up to 1.2642 Expectations: touch in 1.2489, then rollback down to 1.2451 after wtich there might be starting upward movement to 1.2642. Solutions: 1. Sell from 1.2489 to 1.2451 2. Buy from 1.2451 to 1.2642.
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