The pound was temporarily bolstered by today's policy decision of the BOE on which the MPC decided to increase the main interest rate to 0.50 per cent. However, the price action looks incapable of breaking out above the 23.6 per cent Fibonacci retracement level at 155.699.
That is why the current Flag is likely to be followed by a dropdown towards the 38.2 per cent Fibonacci at 154.419, as per the expectations of the Wyckoff Cycle theory.
Notice that the latter is currently converging with the 50-day MA (in green), making it a more prominent support.
That is why the current Flag is likely to be followed by a dropdown towards the 38.2 per cent Fibonacci at 154.419, as per the expectations of the Wyckoff Cycle theory.
Notice that the latter is currently converging with the 50-day MA (in green), making it a more prominent support.