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The pattern started when the pair bounced from 1.5960. Currently the pair is trading at 1.6257. Technical indicators on aggregate point at appreciation of the pair on 4H time horizon suggesting that upward sloping trend will maintain. Long traders could focus on daily pivot (R1)/Bollinger band/pattern's high at 1.6267/74, daily pivots at 1.6290 (R2) and 1.6313; and pattern's resistance at 1.6347.
The Stochastic indictor on 30M and 1H time horizons sends a sell signal suggesting we will see a bearish correction in the near future. The SWFX market sentiment is bearish as 72% of traders hold short positions on the pair. In addition, in the range of 100 pips from current market price 62% of all pending orders are sell orders. Short traders could focus 20 bar EMA/daily pivot (PP) at 1.6250/44, Bollinger band at 1.6233, daily pivot at 1.6221, pattern's support at 1.6216 and 200 bar SMA at 1.6209..
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