If looking at the pair’s movement in the shorter term, the dominant pattern is an which was formed mid-July. The Sterling bounced off its bottom boundary on January 11 and has since surged against its Australian counterpart. As apparent on the chart, the pair has spent this trading session slightly above the 23.60% . This level might soon mark a correction—a scenario which is likewise reinforced by technical indicators.
Meanwhile, the Pound is facing a massive in the 1.7550/1.7460 area. Given that the general trend during the past two weeks has been upwards, it is likely that this area provided the necessary support to reverse the pair back north.
Upside target for the following weeks might be the senior channel circa 1.80.
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