© Dukascopy Bank SA
After a prolonged bullish run in the first half of February the trading range of the Cable started to narrow as if it was limited by two converging lines. However, given that the currency pair has already reached the apex of the pattern, the next few days are likely to be quite volatile, since a break-out will not keep itself waiting for long now.
And even though at the moment most of the SFWX market participants are holding short positions, expecting the Great Britain Pound to underperform, GBP/USD seems to be willing to violate the down-trend resistance line at 1.6735. Then it will open up a path towards the weekly R1 level, which stands next to the Feb 17 high.
© Dukascopy Bank SA