The main theme of GBP/USD in 2017 is a bottoming out, which has clearly formed a bullish channel since March. This bullish channel has been maintained pretty well. At the end of December, the dollar index was about to form a head and shoulder pattern, and again, GBP get support around the channel.
This channel is unusual, it is a bullish channel with a harmonic ratio. For example, the 1.618 times of the 1-2 is exactly to be the target position of the stage(3), 1.618 times of the band of 3-4 formed point 5, which is the long-position target. How do you understand the fio ratio? It's very simple, which means that 2-3 (band) /1-2 (band) = 1.618. This relationship has always been in the pipeline
*It is estimated that the next target for the pound is likely to be around 1.3800, which is 1.272 times the range of 7-8 and will also be the lowest in pound sterling in March 2016.What's more, XABCD point could forms a bear butterfly pattern . If it does, long-tern trader must pay attention
*If the butterfly is breaken, 1.618 times of the 7-8 band will be the next target.