I have denoted the two movements I believe are possible given the technical analysis I have conducted with two different coloured sets of arrows. The purple arrows denote the possibility of price making a more immediate rebound from the lower bound of the daily pennant against which it currently has support, possibly to the upper bound of the 4H channel or the upper bound of the daily pennant, the yellow arrows denote the possibility of a short term break of the daily pennant to the 4H support zone, prior to re entry of the daily pennant. Both possibilities fall in line with the bullish price trend associated with the lower bound of the daily pennant. I will be trading this on the 1H should the black countertrend line I have drawn in be broken correctly. Note has to be made of the MPC meeting this week. I am only trading this pair on the 1H given the unpredictability of long term movements.
