The Pound has been constrained by an ascending channel against the Aussie since mid-July. The lower boundary of this long-term pattern was reached last week. The pair, however, has since remained trading along this line. The Pound’s inability to initiate a new wave up suggests that it might breach the given pattern in the nearest time. An early indication that such a scenario might occur could be a breakout of the 55-, 100– and 200-hour SMAs circa 1.7280. On the other hand, technical indicators flash bullish signals during the following week, thus pointing to a minor weakness which could be followed by a period of appreciation. A possible upside target for the following two weeks might be the combined resistance of the monthly PP and the weekly R2 circa 1.75.
