Finally the exact location of the dominant support can be marked, as the Pound has fully confirmed the trend line by surging against the US Dollar.
The surge resulted in the breaking of the junior channel down pattern’s resistance. However, the ascent of the currency exchange rate was stopped on Friday morning by the 55-hour simple moving average.
In general, the pair is either going to break the SMA and move to the 1.3870 mark or make another attempt to pass the long term support below.
Both scenarios can be played. So watch out for a break out from this rather rare squeeze in.
