We mark a promising demand zone for the pound

31.08.2021

Daily chart: the pair is testing the middle Bollinger band (1.3784), where very strong resistance will be met. Probably, the market will need time to consolidate in this area and, as a result, have enough fuel to move into the upper envelope.

Н4: the low trend potential of the ADX does not allow us to count today on the pair’s growth higher than the upper Bollinger line (1.3803). The “round level” factor is already noticeably affecting the bulls. We are waiting for a rollback to the middle band (1.3742).

Н1: a breakdown of the local upper Bollinger envelope is a signal of a possible continuation of the growth of quotations from the middle band (1.3763). Therefore, buying from this zone can be considered.

Conclusions: a rollback to 1.3763, then an upward reversal.
Trading decisions:
1. Sales to 1.3763.
2. Buying from the 1.3763 zone.