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The pattern started on the 13th of January, 2012, when the pair dipped to 1.5234; currently it is trading at the upper limit of the Bollinger band at 1.6194; pattern's resistance is at 1.6307. Trading volume is decreasing in the length of the pattern. Technical indicators on aggregate point at appreciation of the pair on 1D and 1W horizon suggesting it should breach the pattern upward. Long traders could focus on the weekly pivot (R1) at 1.6245, pattern's resistance/yearly high/weekly pivot (R2) at 1.6307/15 and weekly pivot (R3) at 1.6431.
Short traders could focus on the weekly pivot (PP) at 1.6130, 20-day SMA at 1.6079, weekly pivot (S1) at 1.6059, 100-day SMA at 1.6038 and Bollinger band/pattern's support/weekly pivot (S2) at 1.5965/44.
Main fundamental events which could have significant impact on pairs development in the near future are Bank of England Inflation Letter on 18th of December, UK's Current account and Federal Open Market Committee Meeting Minutes on 3rd of January.
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