As you can see price hit the supply Zone
from FEB 2009 and has since created a channel marked by the thin black lines. In trying to break this Supply zone
3 times price has now created a Head and Shoulders
pattern. This has been created for a few reasons and one main factor is that investors are now taking profit before year end. I have removed Fibonacci Ext because it was a bit cluttered but if add one you can see the Nov 2014 Demand Zone
is very strong and price will rally from there! I suggest this is TP2.
I believe price will drop towards NOV 2014 Demand Zone
where it will rally and test the trend line
from NOV 2014.
You can already see price action behaving in the opposite manner on Cable ( GBP/USD
) and Euro
). Where price has had breakouts and testing previous Trend lines