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The pattern started on the 19th of September, 2012, when the pair dipped to 118.80; currently it is trading at 149.22. Trading volume seems to be U shaped (relatively higher in the beginning and the end of the pattern). Technical indicators on aggregate point at appreciation of the pair on 1M horizon suggesting it should continue following pattern's, upward sloping, trend. Long traders could focus on the weekly pivot (PP)/monthly pivot (S1) at 149.94/150.17, 151.84/154.27 area (20-day SMA, weekly pivot (R1), monthly pivot (PP), recent high and support line) and 155.56/157.09 area (Bollinger band, monthly pivot (R1), 42 month high and weekly pivot (R2)).
Technical indicators on aggregate point at further depreciation of the pair on 1D horizon. Short traders could focus on the 100-day SMA at 148.90, Bollinger band band/monthly pivot (S2) at 148.14/147.57, pattern's support/weekly pivot (S1) at 146.1/145.60, monthly pivot (S3) at 144.27 and 200-day SMA/weekly pivot (S2) at 143.07/142.79.
Main fundamental events which could have significant impact on the pairs development in the near future are UKs CPI announcement and BOJ inflation letter on 18th of June and UKs current account announcement on 27th of June.
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