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The pattern started when the pair bounced from 1.2242 and slowed down close to pattern's resistance band at 1.2375 where the pair is currently trading. Pattern's support and resistance bands are set to intersect on 19th of September, 07:00 GMT, at the level of 1.2358. Technical indicators point at appreciation of the pair on 1H and 1D time horizons indicating that the pair will try to brake through the pattern's resistance. Long traders could set the first targets at the pattern's resistance/daily pivot (R1) at 1.2382 . If this levels is breached, next targets could be set at daily pivots at 1.2412 (R2) and 1.2455 (R3).
The stochastic indicator points at depreciation of the pair on 4H time horizon indicating we should see a price correction as pair approaches pattern's resistance. The SWFX market sentiment shows that 51% of the traders hold short positions expecting depreciation of the pair. Short traders could set the first target at the daily pivot (PP) at 1.2339. If this level is breached, next targets could be set at the SMA200 at 1.2323 and daily pivots at 1.2308 (S1) and 20th of August low at 1.2296.
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