We have a potential expanding triangle playing out in this pair at the moment. The pound has been hit hard recently over brexit concerns and we will have to keep an eye out on price action around June 23 when the referendum takes place. In the meantime we should see range trading opportunities take place.

There are a number of impulsive candle formations suggesting that price action should return to these levels before we see a continuation of the down trend. I do expect lower levels from here later on in the year but am looking for a price rise to around the 170 area by early July. A lot will of course depend on the referendum so, if I have enough time, I hope to amend this post around that time.

Daily candlestick projection:

Weekly outlook:

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