As you know there were sharp movements in both directions in the last few days. This is a signal for a possible triangle between 2.0243 and 2.0548, which could be bullish as well as bearish one. In both cases the possible triangle is far from completing. With an eye on the fact that we are close to the upper border of the triangle I entered small short position for at least test of the lower border. The chart shows the bearish triangle scenario which suggests that the cable will stay below 2.0548 and it will make a deep retracement (at least 61.8 %) of the whole movement started from 1.9650. However this scenario requires further consolidation in the said triangle in the next few days followed by a sharp fall below 2.0243. On the other side a rise above 2.0548 will signal that the triangle is bullish (not bearish as I expect) which should bring a re-test of the 2.0652 high.

Trading strategy: 09:48 EST; 13:48 GMT

Short position from 2.0475, stop loss - 2.0555, target - opened

Confidence level – low

This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.