GBPUSD - Head & Shoulders And How To Play

FX:GBPUSD   British Pound/U.S. Dollar
With Resistance at 1.5400 appearing to be holding strong, an uncertain GBP and hopes for a rate hike in the US sometime in the coming months, this pair definitely has Bearish potential. And the technicals appear to be backing that up with what seems to be a Head and Shoulders pattern in the making.

Price has stalled below the 1.5400 level and the 0.382 retracement level. With a Hanging Man occurring on the daily after a couple of "up days", it looks like the pair could be ready to break the neckline. Should this occur I'd ideally want want to see a retest of the neckline as resistance before seeing the move down.

Regardless of how you like to trade these, an entry level below the neckline at 1.5200 and a generous SL at 1.5400 provides a potential 3:1 Reward:Risk when calculating profit targets from this pattern the traditional way - - giving a rounded up target of 1.4600, which also happens to be this years low to beat so far.
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out