A Potential Inverse H&S Pattern Could Soon Reverse the Trend
On the daily chart , we can clearly spot a possible formation of an inverse head and shoulder pattern. As we can see back in 2021 October, an exact pattern was formed, eventually resulting in a breakout followed by a persistent bull market. Therefore, a similar scenario could happen again soon, hinting a beginning of a bull market.
Currently, we are carefully monitoring the price movement to see whether the price will break above the neckline area. After a clear breakout, meaning a daily candle clearly closing above the neckline, we will then place our buy limit orders on the neckline to capture the retest.
This is a high probability setup to catch an extraordinary bullish impulse because GBPNZD is very volatile, and a price impulse can easily shake this pair by more than 300-400 pips a day.
Currently, we are carefully monitoring the price movement to see whether the price will break above the neckline area. After a clear breakout, meaning a daily candle clearly closing above the neckline, we will then place our buy limit orders on the neckline to capture the retest.
This is a high probability setup to catch an extraordinary bullish impulse because GBPNZD is very volatile, and a price impulse can easily shake this pair by more than 300-400 pips a day.
Trade active:
The price has broken the neckline of the inverse head and shoulder pattern and then retraced and retested the neckline area. Our first target is the 1.9680 level