SimonRasmussen
Long

Testing neckline after breakout from inverted head and shoulders

FX:GBPJPY   British Pound/Japanese Yen
We are seeing a clear retracement to the neckline of the formation. Upside potential looks good where as downside is limited as the neckline is sharp(price will confirm or falsify breakout quickly), thus making for a R:R of 1:5 with the levels marked here. Note on stop and target: these are the least thought about part of this trade - could be set both more and less agressive thus highly changing the R:R.

As marked with downward arrow on the left: decline was very consistent which makes an eventual upturn more simple in judging structures. The zone around 191 could be the major og minor turningpoint. If this breaks then 195 area looks like next logical stop.

The New Zealand dollar looks very weak in itself, and is therefore the main force that is to carry this through. British Pound as currency to trade against the Kiwi is of less importance - though a far better looking choice than for instance USD at the moment.
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