CAD/JPY 1H Chart: Channel Down
- The British Pound is trading against the Swiss Franc in a short-term pennant formation.
- The pattern represents the aftereffect of announcement of the UK Official Bank Rate and the subsequent Governor Carney’s speech last week.
- By the early morning, the currency exchange rate has practically reached the breakout point from the little symmetrical triangle, which represents the pennant .
- Despite the pressure exercised by the 200-hour SMA from the bottom, the pair is still expected to slide downwards.
- The overall length of the flag pole should be equal to 50-70 basis points, which basically coincides with the nearest combined support level set up by the weekly S1 at 1.2619 and the monthly PP at 1.2614.
- After this continuation pattern ceases to exist, the rate most likely is going to make a rebound and the Sterling will start to restore lost positions.