On the Daily/Weekly time frame we had an inverse head and shoulders formation. The neckline was broken follow by a strong follow through. I would like to see a re-test of the neckline/support zone (blue) to set up a buy limit, target zone is highlighted between 1.325 and 1.33. The only concern I would have about this trade is Brexit jitters but with elections coming up there is an expectation that Theresa May will win which would encourage investors to keep purchasing the pound. Further updates will be posted.
Comment:
We are reaching our potential buy zone highlighted in blue. I will be looking for heavy wicking with stops below 1.25
Comment:
Hawkish commentary by Haldane motivating initial jump of our buy zone