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The pattern started when the pair peaked to 79.223; currently it is trading at Fibonacci retracement (50% of move from 19th to 28th of September)/Bollinger band at 78.300. Technical indicators on aggregate point at appreciation of the pair on 1H horizon. Current market sentiment is bullish as 70% of traders hold long positions on the pair. In addition, in the range of 100 pips from current market price 79% of pending orders on the pair are to buy. Long traders could focus on daily pivot (R1) at 78.368, Fibonacci retracement (61.8%)/daily pivot (R2) at 78.544, daily pivot (R3) at 78.650 and pattern's resistance at 78.770.
Technical indicators on aggregate point at depreciation of the pair on 4H horizon suggesting we might see an attempt to breach pattern's support in the near future. Short traders could focus on the cluster of support levels at 78.264 (daily pivot (PP), 200 bar and 20 bar SMAs), Bollinger band at 78.191, Fibonacci retracement (38.2%) at 78.121 and daily pivot (S1) at 78.086.
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