British pound is trending down staying under pressure after yesterday’s session. Lower Bollinger band moved a bit lower and now resides at 1.2374, being an actual target for sellers.
We note strong local dynamic support at the 1.2419 level (lower Bollinger band). We can’t rule out an upward bounce off this zone as ADX indicator didn’t gain trending power yet (watch the black trajectory).
However in case of break of 1.2419 scenario of further drop will be confirmed (red arrow).
Intraday dynamics of decline has trending tone already, but anyway it’s better to get market’s reaction on support 1.2419.
Main scenario: Decline towards 1.2374.
Alternative scenario: Testing of 1.2419 and then upward bounce.
Shorts towards 1.2419 and 1.2374.
Seeking for local sell-signals at 1.2419 and 1.2374.