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The pattern started when the pair rebounded from 1.2443 and slowed down close to pattern's resistance band at 1.2357 where the pair is currently trading. Pattern's support and resistance bands are set to intersect on 26th of August, 19:00 GMT, at the level of 1.2290. Technical indicators point at appreciation of the pair on 1D time horizon. Long traders could set the first targets at the pattern's resistance at 1.2359 and recent peak at 1.2373. If these levels are breached, next targets could be set at daily pivots at 1.2402 (R1) and 1.2446 (R2).
The stochastic indicator points at depreciation of the pair indicating we should see a price correction after a sharp gain the pair experienced in 16th of August from 12:00 to 14:00 GMT. The SWFX market sentiment shows that 51% of the traders hold short positions expecting depreciation of the pair. Short traders could set the first target at the recent dip at 1.2339. If this level is breached, next targets could be set at the SMA200 at 1.2335 and daily pivots at 1.2394 (PP) and 1.2285 (S1).
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