Pattern near to completion, upside break expected | 25 October 2013

The short-term trend remains up or sideways. The pair is forming a consolidation pattern, which looks close to completion as it nears the 45° trend-line and which could either be a reversal or continuation but given the past upside bias is most likely to break higher. As far as levels to watch go, yesterday's analysis still holds: a move above the 1.62525 highs would be a bullish signal, although there is a lot of resistance at 1.6282 and so price might pause there. A clear break above that level would be a really bullish sign and re-established the up-trend, with the next upside target from the count calculated from inside the consolidation pattern, at 1.63875.