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The pattern started when the pair bounced from 0.8038 before rebounding from 0.8187; currently it is trading at Bollinger's band/pattern's high at 0.8347/54. Technical indicators point at appreciation of the pair at 4H, 1D and 1W giving strong support for the presumption that pair will continue to appreciate. Long traders could focus on daily pivots at 0.8376 (R2) and 0.8426 (R3), and pattern's resistance around 0.8497.
The Stochastic indicator sends sell signal on 4H and 1W horizons suggesting that we might see a bearish correction on the pair in the near future. The SWFX market sentiment is bearish as 70% of traders hold short positions on the pair. In addition, in the range of 200 pips from current market price 2/3 of pending orders are to sell. Short traders could focus on daily pivot (R1) at 0.8342, daily pivot (PP)/pattern's support at 0.8292 and daily pivot (S1)/20 bar SMA at 0.8258.
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