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The pattern started on the 26th of February, 2013, when the pair dipped to 0.8577; currently it is trading at 0.8430. Trading volume seems to be increasing in the length of the pattern. Technical indicators do not give conclusive readings on aggregate. Stochastic indicator sends buy signal on daily chart suggesting that pair might go in to bullish rally any time now. Long traders could focus on the weekly pivot (PP) at 0.8469, 20 and 100-day SMAs/weekly pivot (R1)/pattern's resistance at 0.8516/66, Bollinger band at 0.8616 and weekly pivots at 0.8661 (R2) and 0.8733 (R3).
Current market sentiment is mildly bearish as 62% of traders are short on the pair. In addition to this 56% of all pending orders on the pair are to go short as well. Short traders could focus on the Bollinger band/recent low at 0.843/12, weekly pivot (S1) at 0.8348, 200-day SMA/weekly pivot (S2)/pattern's support at 0.8292/52 and weekly pivot (S30 at 0.8156.
Main fundamental events which could have significant impact on the pairs development in the near future are . Minimum bid announcement by European Central bank on the 2nd of May and Asset purchase facility and Official band rate announcements by Bank of England on the 9th of May.
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