The pound made a strong impulsive move to the upside, but the recent price action is starting to show signs of fatigue. Rejection from the highs indicates that momentum is no longer strong, opening the door to a corrective phase.
The expected path indicates a potential breakup, with the price gradually moving lower as liquidity is taken away and late buyers fall into the trap. This type of structure often results in a more visible and controlled downside rather than an immediate sharp sell-off.
Expect some short-term volatility before the trend is fully evident, as market makers usually create uncertainty at these levels. The focus here is on allowing the movement to develop rather than reacting too early.
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