Strong bullish sentiment was found in the support zone around 1.4830, which pushed the pair to the upside reaching 1.5400 then 1.5700 where two prominent tops were established.
The uptrend line around 1.5430-1.5400 applied bullish pressure on the pair which was able to break trough 1.5720 which corresponds to August's highest level.
The market expressed obvious closure above 1.5575 which invalidated the H&S reversal pattern. This opened the way towards 1.5900 initially and probably 1.6000 to be hit soon.
It is important to note that the market expressed a strong bullish engulfing weekly candlestick this week too. That is why, bullish momentum may be witnessed during this week.
Fibonacci Expansion based on the previous swing gives a potential target for the current move up to 1.6040. All bullish expectations depend on not breaking 1.5800 to the downside again.
The material has been provided by InstaForex Company - www.instaforex.com