We recently noted the failed break above resistance. As if often the case this failed break has led to significant falls, with price moving from above 1.51 to below 1.46.

In the process price has also broken the sequence of higher highers and higher lows, by falling below the of the previous pullback. The expansion in volatility has caused the Bollinger bands to expand, and price has been riding the lower band.

Anyone using the false break out as an opportunity to go short will have done well, and now the issue is to ensure that profits are locked in, possibly through a trailing stop mechanism.