Marking a promising area for sales

06.11.2021

Daily chart: a massive breakdown of the lower Bollinger envelope is a clear signal that the quotes will continue to decline. Meanwhile, the ADX indicator has not reached the trend zone yet, therefore, in the first half of the day, the price may roll back in the direction of the middle band (1.3700), where, accordingly, the key supply area is located.

Н4: local dynamic resistance from the middle Bollinger band is almost 70 points below the daily level (1.3626), so it is very possible that we will see active sales from this particular zone, inasmuch as the lower Bollinger envelope was broken.

Н1: so, we note the presence of a breakdown of the lower Bollinger envelope on all timeframes, which makes the negative forecast for the pound almost unambiguous. Only a substantial negative news background for the dollar can hinder its development.

Conclusions: an upward rollback to the area of 1.3575-1.3626, then a collapse in the direction of 1.3400 and below.
Trading decisions: selling from the 1.3575-1.3626 zone to 1.3400 and below.