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The pattern started when the pair dipped from 0.7986 before starting to appreciate from 0.7924; currently it is trading at daily pivot (R1) at 0.8082. Technical indicators on aggregate point at appreciation of the pair on 1D horizon suggesting it will continue to follow pattern's, upward sloping, trend. Current market sentiment is bullish as 52% of traders hold long positions on the pair. Long traders could focus on daily pivot (R2) at 0.8100, September high at 0.8115, daily pivot (R3) at 0.8129 and pattern's resistance limit at 0.8171.
The Stochastic indicator sends sell signal on 4H horizon suggesting we will should see a bearish correction in the near future. In 200 pips range from current market price 55% of all pending orders are to sell. Short traders could focus on Bollinger band at 0.8076, 20 bar SMA at 0.8064, daily pivot (PP)/Bollinger band at 0.8052 and 200 bar SMA/Fibonacci retracement (61.8% of 14th of September—27th of September move) at 0.8044/42.
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