Downswing approaches to the lower border of support zone 1.2165-1.2250. Bears are in a very good shape, but scenario with upward bounce still appears more likely: amplitude of decline is too big and market might lack energy for breaking strong level. Here the major may face not only profit booking by sellers, but also limit buy orders. Nevertheless so far all this is just guesses, therefore we, of course, can’t rule out further drop of the pound (black area).
Local downward structure is about to complete downswing. If a bounce off 1.2165 gets confirmation, the quotes might retrace to 1.2209.
Main scenario: Decline to 1.2165, then pullback to 1.2209.
Alternative scenario: Break of 1.2165 and decline to 1.2100 and 1.2050.
Longs from 1.2165 to 1.2209.
Shorts from 1.2209.
In case of break of 1.2165 - shorts to 1.2100 and 1.2050.