I wanted to bring an excellent trade opportunity that can be entered actually immediately or you can wait for even further confirmation for a follow up pattern. GBPAUD has been in a since September of 2014, during this time the trend was only seriously put in jeopardy once, however a close below the was unobtainable. This past week we had a daily close below the ...since then we have retraced back up to the golden rule of price action, old support becomes new resistance. We have failed to close back into the ...and looks like this trade is ready to get moving very shortly. If you're curious in seeing where this originated please see the weekly chart below.
Short at 2.09071 - or Manual Entry
Stop Loss 2.10000
Target Profit 1: 2.0725
Target Profit 2: 2.01000
What else is going on in this trade that you need to pay attention to? GBPAUD has very strong potential to complete a Pattern with confirmation. It's very important that I stress that this trade is not yet confirmed and in order for myself to trade a HnS Pattern a few very key characteristics need to take place first.
Head and Shoulders:
1. Clear and defined trend prior to pattern start (a trait often overlooked)
2. Clean Shoulders and Head of pattern in a TIMELY manner (i.e. if it takes 5 weeks for the left shoulder and head to form, we don't want the right shoulder to take 25 weeks to form)
3. Neckline that the market reacts to
4. Last but not least a confirmed break of the neck line, this means daily close or better.
Here's a look at the current weekly pattern:
***Remember this pattern is NOT officially a pattern until the neck line is confirmed to be broken***
Should the neck line confirm this pattern another chart will be posted and targets will be looking much lower, first at the 2. 0000 area and then even further the measured objective of near 1.92000.
Please do your own analysis before entering a trade. If you like what you see, feel free to comment, follow or "like"