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The pattern started when the pair rebounded from 1.2395 and after testing pattern's support levels at 1.2225 and 1.2134 the pair slowed down at 1.2180 where the pair is currently trading. The RSI and the stochastic indicator on 4H outlook point at appreciation of the pair indicating it will continue to move towards pattern's resistance band. Long traders could set the first target at SMA200 at 1.2222. If this level is breached, next targets could be at the daily pivot point at 1.2239 and the pattern's resistance band at 1.2283.
Technical indicators on aggregate point at deprecation of the pair at 1H time horizon indicating that the pair will continue to follow pattern's trend. The SWFX market sentiment shows that 75% of traders expect depreciation of the pair as well. Short traders should focus on the 3rd of August low at 1.2167. If this level is breached next targets could be at the recent pattern's support band test level at 1.2134 and the pattern's support band at 1.2097.
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