Formation – Expanding falling channel
Outlook – Cautiously bullish
Sterling’s sharp fall left it oversold as per 15-min RSI, with the indicator forming bullish divergence pattern with price chart in the NY session.
The subsequent attempts to recover losses have failed around 1.4220, still the intraday support of 1.4190 (daily low) is being defended.
Thus odds of a quick fire corrective rally to channel resistance of 1.4254 cannot be ruled out.
Recommendation – Long @ 1.42 target 1.4254 Stop 1.4188
Strategy – Stop is quite tight, but traders may attempt going long again, unless the 15-minute candle closes below 1.4190. Stop however is to be exercised not on closing basis