Sterling almost regained all the pips lost after the BOE announced a rate cut and the intention for more rate cuts this year. The pair was trading in a 1 hour channel which was broken today after reaching the top of the bigger falling channel on the 4h chart . So we have two channels in play now , uprising one which was rejected by the resistance line at 1.3270$ and went to find support at the 200 MA on 30 min chart and the base of the channel at 1.3170$ . The pair bounced 20 pips from the support , however I expect a break of the uprising channel and break of the support at 1.3170$ area. While the markets are waiting for any clues from janet yellen tomorrow at the jackson hole symposium , the pair will react violently to any hints about rate hike from the federal reserve . Personally , I believe we might see a rate hike in september . Anyway , we have two scenarios and possible trades here : First one : long the pair on the close above resistance trend line possibly at 1.3250$ ....
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