Following on our previous analysis of the pair, the price action seems to follow the bearish channel, oscillating between the higher bound of the channel and a key support level @ 1.27.
Weekly: Since a new lower high has been formed on the Oct 8th, we can now expect to see a bearish trend towards a new lower low. If this trend is validated, the level we can expect is around the 1.2-1.21 area. We should use 1.25 as a likely intermediary step, confirmed both as a psychological level and a -27% fib level between the previous lower low and lower high.
On the daily timeframe, we can see a few minor bullish counter-trends being rejected at 1.317 and 1.307 (wicks). It's clear that there is still bullish momentum, likely driven by fundamentals around Brexit, however no major event took place to suggest a complete trend reversal.
Weekly: Since a new lower high has been formed on the Oct 8th, we can now expect to see a bearish trend towards a new lower low. If this trend is validated, the level we can expect is around the 1.2-1.21 area. We should use 1.25 as a likely intermediary step, confirmed both as a psychological level and a -27% fib level between the previous lower low and lower high.
On the daily timeframe, we can see a few minor bullish counter-trends being rejected at 1.317 and 1.307 (wicks). It's clear that there is still bullish momentum, likely driven by fundamentals around Brexit, however no major event took place to suggest a complete trend reversal.