Today there will be a ruling from the British high court to challenge the role of parliament to invoke article 50, the results of the ruling will be released at 11am London time. Anything that signals a slow-down or potential halt to the invocation of article 50 should send the pound soaring. We are also in for a day of very important pound news, ranging from releases such as the Services PMI, the inflation report, the interest rate decision ending off with a speech from Marc Carney; where he may provide further insight into whether he will remain in his position for the full term, or terminate earlier; should he remain, investors will see this as a sign of stability in turbulent times, which may give the pound a nice boost as well. Thus it should be a volatile day for the pound.

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It is important to note that we have seen considerable Yen strength over the past few days, most likely related to investor nervousness around the U.S. elections, causing investors to turn to the yen, which is a safe haven currency. Thus, I will be very cautious in taking this trade, and will remain aware of all pound news coming out throughout the day.

price has bounced off the daily 21 moving average, indicating a possible lower low, although so far price has halted at mm2, showing us a potential target off Mr1 or even higher.

price had reached WR2 early in the week, as shown by the arrow in the red zone. the target from that area is usually wpp or Ws1, which has been hit, shown by the tick on my chart. the target from ws1 is now WR1 or higher, and positive pound news could give this pair the boost it requires to get there.

Price has made a lower high, but may possibly form a higher low, which is where I would look to enter, this space is in between dm1 and ds1, as indicated by my arrow, and price action of potential movement is shown by red lines.

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