This seems like an easy setup, with everything pointing towards the down side. Let's break it down, shall we?
We can see a clear uptrend which started from our significant line of support. In addition, we have a Head and shoulders pattern, which is a reversal pattern. Not only is “head and shoulders” known for trend reversals, but it’s also known for dandruff reversals as well. HaHa. But let's leave the dandruff aside.
If you like taking risks, you can sell the Pound at current levels (1.90954), with your target being 1.79105, as the second shoulder has already been formed.
However, if you'd like to play it safe (like me, sometimes), we can wait for the price to break below the neckline. In that instance, we'll have an entry order below the neckline and calculate our target by measuring the high point of the head and shoulders pattern, which puts our target at 1.79105. Alternatively, you can always aim for the start of the uptrend, our significant point of support.
Let me know if you have this on your watchlist. I will be keeping a close eye on this and update timeously.
Happy trading!
We can see a clear uptrend which started from our significant line of support. In addition, we have a Head and shoulders pattern, which is a reversal pattern. Not only is “head and shoulders” known for trend reversals, but it’s also known for dandruff reversals as well. HaHa. But let's leave the dandruff aside.
If you like taking risks, you can sell the Pound at current levels (1.90954), with your target being 1.79105, as the second shoulder has already been formed.
However, if you'd like to play it safe (like me, sometimes), we can wait for the price to break below the neckline. In that instance, we'll have an entry order below the neckline and calculate our target by measuring the high point of the head and shoulders pattern, which puts our target at 1.79105. Alternatively, you can always aim for the start of the uptrend, our significant point of support.
Let me know if you have this on your watchlist. I will be keeping a close eye on this and update timeously.
Happy trading!