The Cable is set for a fresh direction. Markets await U.K. jobs and wages data for the next move. The risk-off sentiment and firmer U.S. dollar sends Cable lower. May’s Plan B could keep the corrective slide cushioned. The new direction of the pair will be determined by two patterns.
As seen on the chart – white area – there is an emerging triangle pattern. Meantime, we see a Head and Shoulders pattern is being printed. The baseline of the triangle resides at 1.28200 where it meets the neckline of the SHS pattern. A bearish breakout of the triangle where the SHS pattern starts to work would send the pair 1.27800 1.27500 and 1.27200. A bullish breakout will lead Cable 1.29350 and 1.30000.
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