© Dukascopy Bank SA
A precipitous rally of the Cable during the second half of November was halted by the resistance at 1.6457. Being that the currency pair has made two distinct attempts to break it (on Dec 2 and 10), we may contend that there is a double top pattern emerging on the four-hour chart.
Right now the price is already trying to violate the neck-line at 1.6267, which is strengthened by the weekly S1 and the daily S2 levels. According to the traders' sentiment, the dip will not be limited by this demand area—74% of positions are short. The first most likely target in case of further bearishness will be the 200-period SMA that merges with the weekly S2 at 1.6206/1.6181.
© Dukascopy Bank SA