10 April

We noted yesterday that the British Pound is hinting at a double top below the 1.50 level. Bearish cues are significant, with the pair showing a Spinning Top followed by a pair of progressively lower Hammer candlesticks. Prices are now testing below the last layer of support at 1.4680, a level that has market the tops of the previous two upswings. A daily close below this level will open the door to enter short, targeting the double bottom at 1.3731.
For the last three trading sessions, the Pound has been unusually tame against it's American counterpart. Up until the start of the European trading session, one may have suspected the culprit to be the general anticipation of the Bank of England rate announcement. Now that this has passed, the tight consolidation remains. For now, traders might be able to play this light environment until the pair breaks out to either side.

Currently, we see the Pound trading just above support against the U.S. Dollar. The pair may move upward towards resistance, around the 1.4710 level.