Sell GBPUSD 1.3100 targeting new lows below 1.28

FX:GBPUSD   British Pound / U.S. Dollar
161 1
Sterling remains weak and has just broken the neckline of a bearish head & shoulders formation on the 4 hour chart.

Caution is advised (see my linked post) with regards to the risk of a short squeeze perpetuated by UK labour and retail sales data this week.

It would be prudent to operate a stop on-close rather than at-level given the likely volatility around data releases. Aiming for approximately 1.28 (-300 away) with a stop no higher than 1.32 (+100 away)

A negative weekly/daily bias remains below 1.3317, with this short term formation on a 4 hour interval also negative.
Trade closed manually: UK Inflation came in higher than expected, reduces likelihood of a rate cut next month by the BoE.

If so, looks like the UK is heading down the path of stagflation (low economic growth and rising prices). Nightmare scenario for policy makers.

Return to the longer and intermediate weekly / daily trends for GBP unless we see strong selling later today with the 4H H&S setup preserved (not invalidated by a surge above the neckline).

Nice Chart agree with you

Good Luck
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out