The lows in the range are widely tracked by all and those outguessing a 50bp Fed will be rewarded. To the topside, resistance comes into play initially at 1.261x which is the 23.6% retrace. This will be a brutal squeeze as the boat is fully loaded to the downside; however ultimately should be viewed as a selling opportunity for the 5th and final wave in the large Brexit leg.
Both sides are tradable, the downside is lacking meat on the bone and therefore a squeeze is the healthy option. Confidence in the downtrend will increase as we start closing below 1.235 with the targets eventually at 1.20xx.
Best of luck those holding UK assets, looking for positions in Sterling or sidelined for Fed.