© Dukascopy Bank AS
The pattern started on the 13th of January, 2012, when the pair dipped to 1.5234; currently it is trading at 1.6078. Pattern's resistance is at 1.6306 and is set to intersect with the pattern's support on 4th of April, 2013. Trading volume is decreasing in the length of the pattern. Technical indicators on aggregate on 1W horizon and the Stochastic indicator on 1D horizon point at appreciation of the pair suggesting it should bounce from pattern's support. Long traders could focus on the 100-day SMA at 1.6086, weekly pivot (PP)/20-day SMA at 1.6155/70, Bollinger band/weekly pivot (R1)/pattern's resistance at 1.6300/06 and recent high at 1.6389.
Current market sentiment is strongly bearish as 56% of traders sold the cable versus the greenback. Short traders could focus on the Bollinger band/pattern's support at 1.6039/21, weekly pivot (S1) at 1.5922 and 200-day SMA at 1.5875.
Main fundamental events which could have significant impact on pairs development in the near future are Bank of England official bank rate and asset purchase facility announcements on 10th of January and the US trade balance announcement on 11th of January .
© Dukascopy Bank AS