Following the massive plunge on August 3, FBP/USD entered a consolidation phase against the Australian Dollar, thus forming a relatively flat channel up. The rate, however, failed to reach the upper channel boundary in its last wave north, as sluggish UK fundamentals put a downward pressure on the British currency.
This suggests that the current upward momentum may have lost its strength, setting the pair for a fall. The upward surge mid-session demonstrated that there is still some potential north that should be realised in the upcoming hours.
Thus, the base scenario favours the rate appreciating up to the 1.6480/1.6500 area and confirming a short-term descending wedge. Consequently, the rate should breach the lower channel boundary and approach the bottom wedge line.