The triangular consolidation pattern has been observed since last week, and the most appropriate strategy is to trade in the direction of the breakthrough. However, it is important to note that only one technical breakthrough is difficult to be justified without being accompanied by news about Brexit to support it.
As things stand for the moment, there are no new developments around Westminster and this helps buyers stay in the game despite the price break. Currently, 100 MAs and 200 MAs are at 1.2959 and 1.2964 and this helps buyers, with the next close support at 1.2950.
Sellers have to find a way to keep moving down, but I do not believe this can happen without a fundamental reason.
Hence, although the price is below 1.3000, it does not mean that the movement will continue. Brexit news remains a key catalyst in defining the direction of the pound so that without news, it is very likely that the movement will be reversed back above 1.3000.
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