The Pound had been trading in a channel down since mid-2016 prior to breaching this long-term pattern on October 19. The rate has since reached its five-and-a-half –month high of 1.9431 and subsequently traded lower.
Apart from the aforementioned pattern, the Pound’s movement is likewise constrained by two opposite channels. Characteristics of all these patterns suggest that the pair could be relatively flat in this session, as the upside is expected to be the 1.9150 where the combined support of the 100– and 200-hour SMAs and the upper boundary of the junior channel is located.
Meanwhile, the general direction in the second part of this week could be guided by bears down to the upper boundary of the long-term channel located in the 1.86/88 area.
It is possible that the rate reverses near this mark and initiates a new up-wave in the medium-term channel. The upside potential in this case might be the 1.97 area.
Apart from the aforementioned pattern, the Pound’s movement is likewise constrained by two opposite channels. Characteristics of all these patterns suggest that the pair could be relatively flat in this session, as the upside is expected to be the 1.9150 where the combined support of the 100– and 200-hour SMAs and the upper boundary of the junior channel is located.
Meanwhile, the general direction in the second part of this week could be guided by bears down to the upper boundary of the long-term channel located in the 1.86/88 area.
It is possible that the rate reverses near this mark and initiates a new up-wave in the medium-term channel. The upside potential in this case might be the 1.97 area.