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The pattern started when the pair dipped from pattern's resistance at 1.5768; currently it is trading at 1.6170. Technical indicators on aggregate point at appreciation of the pair on 4H and 1W horizons suggesting pair will continue to appreciate. Current market sentiment is bullish as 52% of traders hold long positions on the pair. Long traders could focus on daily pivots at 1.6182 (R2) and 1.6229 (R3) and pattern's high (the highest level since September, 2011) at 1.6310.
In the range of 200 pips from current market price 56% of all pending orders are to sell suggesting a presence of significant resistance for the pair which might push it lower. Short traders could focus on Bollinger band/daily pivot (R1) at 1.6166/55, cluster of support levels at 1.6117/05 (Fibonacci retracement (23.6% of 2nd of August-21st of September move), weekly pivot (PP) and 200 bar SMA), 20 bar SMA at 1.6094 and weekly pivot (S1) at 1.6081.
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