GBPAUD Short Opportunity Trend Line Breaks - HnS soon?

FX:GBPAUD   British Pound / Australian Dollar
Greetings Fellow Traders,

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 Bullish Trend since September of 2014, during this time the trend was only seriously put in jeopardy once, however a close below the trend line was unobtainable. This past week we had a daily close below the trend line ...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 trend line ...and looks like this trade is ready to get moving very shortly. If you're curious in seeing where this trend line originated please see the weekly chart below.

Trade Opportunity:
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 Head and Shoulders 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 head and shoulders 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"

Hi, as the neckline is broken, is it a good time to enter the trade now ?
Hi nl88, as with nearly all of my trades we use the golden rule of old support becomes a new resistance and vice versa. I apologize for the late reply but I was traveling today. When you commented the neckline was not CONFIRMED to be broken, meaning the daily close below 2.07. We had that today at the end of US trading session. From here, we are looking for the neck line to be tested for a short entry around 2.0700. I will post an updated chart shortly, only now getting settled.
Synapse Synapse
Here's a follow up as far as the entry we are looking at. Remember Remember Remember - the CLOSE of the candle is most important.
nl88 Synapse
Thanks for the tip! So the moment the support becomes a resistance, do we have to wait for the next candle, or we can start trading the moment we see the pair having trouble pushing thru the resistance ?
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