Residual bullish potential

06.09.2021

Daily chart: the upward wave of the British pound is presumably in its final stage – the pair is approaching the upper Bollinger band (1.3912), and there is still no trend pressure from the ADX on the bulls side. However, everything can change if such pressure appears at the moment of testing resistance at 1.3900-1.3912.

Н4: on Friday, the bulls could not overcome the local barrier of 1.3879 (the upper Bollinger band), which does not exclude a short-term rollback of quotes downward. However, the trend potential of the ADX is observed here, therefore, the continuation of growth is possible at any time.

Н1: the hourly upper Bollinger envelope has been broken, which is a signal for continuation of the growth. Therefore, we consider buying from the middle band (1.3847).

Conclusions: rollback to 1.3847, then growth to 1.3885 and 1.3900.
Trading decisions: buying from the 1.3847 zone to 1.3885 and 1.3900.