© Dukascopy Bank SA
Currently, the pair is testing the upper trend-line, which is also underpinned by the 100 and 200-period SMAs around 1.8040. The 4H and weekly technical indicators are pointing the same way as the trend is heading-to the downside. To our mind, it is unlikely that the trend could be broken to the upside due to the strong resistance that the Pound is facing. Therefore, we expect the pair to fall below the psychological level at 1.80 and to target October's lows around 1.7870, possibly even the 1.78 mark.
© Dukascopy Bank SA