Price action set to retest the newly formed intermediate rising trend line
connecting both troughs created in Aug 15 & Sept 20th formation pattern shown in yellow. However, a shorter term declining trend line
, shown in purple, continues to emerge as price action is unable to puncture above this trendline
. Furthermore, a medium term downward sloping trendline
, shown in white, gives us an idea of how narrow the price action range has been in the past. Solid support is seen at the 1.2873 level shown in red, a move below that level would indicate a search for post Brexit lows maybe in the works. I down't see this happening, because that would mean other cross pairs like: EURUSD
will also seek to resume to post Brexit lows, and confirming a strengthening USD currency, as well as both weakening commodities
prices. A repeat of late 2015 patterns ? Not.