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Short

GBPAUD - Head and Shoulders Pattern Confirmed, Get Ready

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

I posted just a few days ago about a key technical level on GBPAUD             for a short opportunity that could lead to a Head and Shoulders Pattern confirmation. At the end of Tuesday's trading candle the market confirmed the break by closing well over 100 pips below the neck line.

As with all very significant breaks of support and resistance we are looking to gain an optimal entry on this position by waiting for the market to retest the significant level. Patience is key.

Head and Shoulders Patterns typically have a measured objective that equals the distance from the neck line to the top of the 'head'

Trade Opportunity:
Sell Limit 2.06800 or Manual Entry
Stop Loss 2.10000
Target Profit 1: 2.0250
Target Profit 2: 1.9750
Target Profit 3: 1.9250


Additional Details:
The market needs to respect the neck line that has been identified, look for a daily close ABOVE 2.0740 to negate this pattern. It is perfectly acceptable for the market to spike into this territory but CLOSE lower. The CLOSE of the daily candle is the significant factor.

Please do your own analysis before entering a trade. If you like what you see feel free to comment, follow or "like"
Trade active: Stay safe during NFP everyone - Remember Candle Closes are more important then reactionary movements.
good analysis sirr..I am big fan of you and I am always waiting for your analysis
+1 Reply
Synapse kumar.mayank0470
Thank you very much, appreciate the feedback.
Reply
Sir what is your view today about eur/usd it goes up or down due to nfp event
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Synapse kumar.mayank0470
I don't speculate about which direction a News Release is going to take a currency pair. Often times there are wild reactions in BOTH directions, all of which are accounted for within the Daily and Weekly Candlesticks. My advice to anyone trading the Eur/Usd pair early this morning is to do so with caution or simply wait til it's over and done with, we had a much stronger than anticipated move yesterday and the market needs a little bit of time to figure out exactly what it is doing. The move yesterday moved through so many key resistance levels that it's hard to gauge immediate future direction.
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tavis Synapse
Synapse - thank you for your analysis. What is your view on the GBPAUD pair over the long term?
+1 Reply
Synapse tavis
Thanks for the feedback as well, much appreciated. How long term are you talking? like through 2016? This particular trade could very well carry for several weeks
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Is this trade still active?
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Synapse ddp922
Yes. We're in the middle of a weekly retest. Looking for Friday's close to be at or below 2.07 area
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