The USA GDP data released last Friday had an opposite effect making the price spike but perhaps the numbers had been priced in on the previous day. It is the last week when price can continue hovering within the limits of the symmetrical triangle (daily chart). The range now is somewhere between 1.1600 and 1.1720, which will narrow to 50 pips by Friday. If the price makes a pennant then the breakout should be downwards but there is no real guarantee to that. Anyone trading the pair will watch for false breakouts too. The breakout will bring traders between 200 and 400 pips. For confirmation, one will need to make sure the indicators are aligned towards the alleged breakout. I am curious to see the impact of the fundamentals.
Well, as of 8/12 before the market opens, the price broke they way you thought it might. The newbie question I will pose for you is what confirming indicators exist after the breakout to confirm the downward movement? Possibly breaking and closing below 1.5312 on 8/9?
RCtrader2
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@DocWonmug, The same indicators and patterns used in any other situation. Monitor divergence on lower timeframes (MACD), check for PA heading towards oversold/overbought on Stoch, RSI balancing between 30 and 70, harmonic patterns on lower time frames etc.