As we currently move sideways around 1.65, you wonder if this is not the right price. Notes from a Bank of England meeting released today suggested the central bank may increase liquidity with further quantitative easing seemed to spook the pound, causing a sale down under 1.64. When US financial heavy weights, Warren Buffett, and Bill Gross both chimed in with bearish dollar comments, we were back to 1.65 in a hurry.
The confines of the hourly chart above are narrowing so a breakout should be imminent. But which way? Perhaps tomorrow's reports on UK retail sales and/or public sector net borrowing will provide the jolt that causes a break out. Then if this pair trades according to the pattern, you wait for a bit and then fade the breakout.