The first half of the previous trading day the currency pair, indeed, spent in a limbo between two combined support and resistance barriers. However, a sharp appreciation of the buck by 37 basis points dragged the pair down right in the middle of a short-term symmetrical triangle.
It seems that this pattern formed in anticipation of a release of information on the UK Services PMI. Even though the plunge towards the 200-hour SMAs seems a more reasonable scenario from a technical perspective, everything will depend on content of the report that will be published by the Markit at 8:30 GMT.
