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The Cable has build a perfect triangle pattern in the four-hour chart. It is the rare case when the currency pair managed to fill into the triangle by almost 100%. Despite that, our expectations for the long-term are broadly bearish with respect to the Pound Sterling. In case of a descent below the 200-period SMA at 1.4453, the pair will be estimated to head in the direction of the monthly pivot point, 100-period SMA and weekly S1 at 1.4408/1.4380. Bearish success here will imply a heavier sell-off towards 1.4080, namely the multi-period low for this cross. Even though SWFX sentiment is somewhat neutral (53% long), the positive scenario is not completely ruled out. Any growth will have 1.4669 as the first goal.
© Dukascopy Bank SA