GBP/USD: There is a large Head and Shoulders pattern on

Tian Kriek

Analyst


November 13, 2019 02:49 PM

BEARISH

Daily Trading Range:
GBP/USD: There is a large Head and Shoulders pattern on the Monthly time frame however price bounced against 1.2000 pivotal support. This means that we may see a substantial retracement, potentially to the next pivot at 1.4000. The D extension of the most recent Fib up swing has been hit on the Weekly chart suggesting we will see a minor retracement before price moves higher. The latter observation is confirmed due to the outer trend line being broken and the possibility that price will return for a retest. On the Daily chart there is a Bullish Crown formation however price is expected to retrace about 300 pips to 1.2510 to the projected right tip before moving higher. I am holding a short position on the GBPUSD due to the Descending Triangle being breached to the downside (on the 2 Hour Chart). However, price moved back inside the boundaries of the triangle. I am taking a "Wait and See" approach for now

Daily Chart

Daily Chart

Daily Support and Resistance

Resistance 3: 1.2400
Resistance 2: 1.2250
Resistance 1: 1.2500
Current Price 1.2837
Support 1: 1.2100
Support 2: 1.2000
Support 3: 1.1800

Two Hour Chart

Two Hour Chart
10 Keys to Successful Forex Trading