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The pattern started when the pair bounced from 0.7456 and after testing pattern's resistance twice it slowed down above 200 day SMA at 0.8093 where the pair is currently trading. Technical indicator on aggregate give neutral signals on 4H, 1D and 1W horizons indicating that the pair should continue to hover above 200 day SMA in the near future. Trader sentiment at the moment is almost equally divided between bears and bulls supporting probability of such development. Long traders could set the first target at daily pivot (PP) at 0.8113. If pair breaches this level it should meat significant resistance at daily pivot at (R1) at 0.8134 and 22st of August high at 0.8144.
Short, who expect that the pair could drop below 200 day SMA, should focus on the daily pivot (S1)/22nd of August dip at 0.8081/77. If this level is breached, next targets could be at daily pivots (S2) at 0.8059 and 200 day SMA at 0.8043.
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