| Indicator | 4H | 1D | 1W |
| MACD (12; 26; 9) | Buy | Buy | Buy |
| RSI (14) | Neutral | Neutral | Neutral |
| Stochastic (5; 3) | Sell | Sell | Sell |
| Alligator (13; 8; 5) | Buy | Buy | Buy |
| SAR (0.02; 0.2) | Buy | Buy | Buy |
| Aggregate | ⇒ | ⇒ | ⇒ |
After bouncing off the lower boundary of a four-month channel circa 1.71 mid-January, the Sterling began appreciating substantially against the Aussie during the following weeks. As a result, the pair reversed from the upper boundary of the senior pattern on January 8 and started forming a new channel down. This pattern is unlikely to hold, as the Pound failed to reach its lower line last week.
The rate being squeezed in an increasingly narrower range during the past three sessions point to a possible breakout and a subsequent surge. It is more likely that the surge occurs to the upside towards the 1.7975 mark— the pair's highest level since late June, 2016. In order to confirm this scenario, the Pound has to breach the combined resistance of the 200– and 55-hour SMAs and the weekly PP circa 1.7720.
On the other hand, the prevalence of the bearish sentiment should push the rate towards the monthly PP and the weekly S2 at 1.75 this week and even lower in the medium term.