Daily Chart
Pattern
We can see price bottomed out at 1.2662 and has subsequently made a pattern of higher highs and higher lows. The recent higher low formed a bullish double bottom, denoted by the horizontal line. Double bottoms which form just above the major low are generally an excellent indication of a new uptrend in play. I now expect price to do some backing and filling before launching higher again.
Bollinger Bands
Price is at the upper band and I am looking for resistance to come in and send it back to the lower band for the next higher low.
Fibonacci
The double bottom was at retroactive support from the 76.4% retracement level so I believe we should now be looking at the next level of support being the 61.8% retracement level at 1.2846. And, as per usual, I like to see this level given a test so perhaps price can nudge marginally below before turning back up. The 76.4% angle looks a prime target.
RSI is strong.
Weekly Chart
Pattern
The final leg of the bear rally that started in 2016 looks to have just commenced the final phase. This should be the most explosive leg.
Bollinger Bands
Price is at the middle band and I expect some temporary resistance around here before heading north once again.
Fibonacci
This fan uses the first high as the end point and the low was bang on support from the 76.4% angle while clipping the 61.8% retracement level. Nice. I am now looking for price to surge higher and eventually top out at resistance from the 23.6% angle. If not, the 38.2% angle. Let’s see.
Horizontal line
Denotes the price where price plunged after the Brexit vote and I expect price to trade back to that region.
Moving averages are in a bearish position which adds confidence that this is a bear rally only.
RSI is strong.
Summing up, after a small correction in the coming days, I expect price to surge higher and eventually top out above the 1.50 level.
