The British Pound is trading against the Swiss Franc in a short-term pennant formation.
The pattern represents the aftereffect of announcement of the UK Official Bank Rate and the subsequent Governor Carney’s speech last week.
By the early morning, the currency exchange rate has practically reached the breakout point from the little symmetrical triangle, which represents the pennant.
Despite the pressure exercised by the 200-hour SMA from the bottom, the pair is still expected to slide downwards.
The overall length of the flag pole should be equal to 50-70 basis points, which basically coincides with the nearest combined support level set up by the weekly S1 at 1.2619 and the monthly PP at 1.2614.
After this continuation pattern ceases to exist, the rate most likely is going to make a rebound and the Sterling will start to restore lost positions.