This pair return back into phase 1 of weekly down trend.


There was small issue few weeks ago, when HH was made, but we could consider that as a double top. At the moment price seats on 78.6% Fibonacci retrace of last swing up. Weekly Stochastics is still crossed down and not in oversold territory, so we could still expect lower prices on that pair, despite price also seats on monthly support at 0.7050. When moving down to daily chart, we see that Stochastics is already in oversold territory, which suggest that we could at least get small bounce up from support.


That is why I will look for another sell signal a bit higher after a retrace at round 0.7100. If price will not find support at previous low at 0.6934, then next support is at round 0.6500. So lots of pips, if good conservative entry will be found.

In UK tomorrow there are Official Bank Rate news, BOE Inflation Report and Monetary Policy Summary news.

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