Here's a Thought...

Last Thursday the BoS dropped their base rate to 0.25% and within an hour Sterling and the Dollar spiked massively against it.

Here's the USDCHF 1H chart; which roared up 315 pips.

But what has surprised me since is the lack of follow through, which given the strength and pace of the initial reaction strikes me as strange.

So I pulled up a Daily chart on which I was planning a short trade some weeks back. Here it is unadulterated...

As you can see, its rise has been halted by that old rising support now resistance...

... and I just wonder if this pair is finally running out of steam.

So, turning our attention back to the 1H chart...

...I've drawn a horizontal support line beneath the latest consolidation zone at 1.1833. I note that
this level has been a significant support before.

From here it's either going to gather its skirts and burst through that sloping resistance line. Or, it's going to fall and close back through support.

And if it does, I'm going to short it.