Potential Inverted H&S - GJ
Here I have GBP/JPY on the 4Hr Chart!!
Price has given us 2 Lows both returning to a very clear Resistance Area! This price action could possibly be outlining a very strong reversal known as an Inverted Head & Shoulders Chart Pattern!!
Now with the Lower Low or "Head" being followed by Higher Low or "Right Shoulder", this Price Action signifies that price no longer wants to continue Lower and wants to make HIGHER HIGHS!!
What we are waiting to see is for price to retest the "Neckline" one last time for a 3rd Touch before giving us a BULLISH BREAK to continue HIGHER!!
Strengthening my BULLISH BIAS is the Bullish Divergence on the RSI indicator showing price, after being HEAVILY Oversold Dec. 7th, wanting to reverse in the opposite direction.
Fundamentally, this week
GBP - "Clear"
JPY - "Clear"
**Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
-Pattern Prediction-
*If Price Breaks and Closes below 179.783, Pattern INVALIDATED!
*If Price Breaks and Closes above 184.065, Pattern CONFIRMED!
**Price Action after Confirmation of Pattern will initiate my Trade Action Plan!
Price has given us 2 Lows both returning to a very clear Resistance Area! This price action could possibly be outlining a very strong reversal known as an Inverted Head & Shoulders Chart Pattern!!
Now with the Lower Low or "Head" being followed by Higher Low or "Right Shoulder", this Price Action signifies that price no longer wants to continue Lower and wants to make HIGHER HIGHS!!
What we are waiting to see is for price to retest the "Neckline" one last time for a 3rd Touch before giving us a BULLISH BREAK to continue HIGHER!!
Strengthening my BULLISH BIAS is the Bullish Divergence on the RSI indicator showing price, after being HEAVILY Oversold Dec. 7th, wanting to reverse in the opposite direction.
Fundamentally, this week
GBP - "Clear"
JPY - "Clear"
**Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS!!
-Pattern Prediction-
*If Price Breaks and Closes below 179.783, Pattern INVALIDATED!
*If Price Breaks and Closes above 184.065, Pattern CONFIRMED!
**Price Action after Confirmation of Pattern will initiate my Trade Action Plan!
Comment:
Price Broke and Closed below 179.783 = Pattern INVALIDATED!
