GBPUSD long on support at key area of 1.4000
A very odd head and shoulders pattern with its peak from the neck line to the top measuring 170pips
So the downwards momentum on the GBPUSD could mean that there is a test of the very big psychological level of 1.4000 coming up as that is the 170 pip movement when calculating the Head and shoulders range.
Look for support at the 1.4000 level before considering a Long position as we have also closed candles under the daily 200 moving average also!
As always fundamentals has played a key role in this movement and I missed the downward momentum on this as it moved hard and fast and was a counter trend move. UK politics causing a big breakout - Interestingly the 50% fibo is near the 1.4000 area when taking into account monthly lows/highs on the daily charts.
Trade safe
So the downwards momentum on the GBPUSD could mean that there is a test of the very big psychological level of 1.4000 coming up as that is the 170 pip movement when calculating the Head and shoulders range.
Look for support at the 1.4000 level before considering a Long position as we have also closed candles under the daily 200 moving average also!
As always fundamentals has played a key role in this movement and I missed the downward momentum on this as it moved hard and fast and was a counter trend move. UK politics causing a big breakout - Interestingly the 50% fibo is near the 1.4000 area when taking into account monthly lows/highs on the daily charts.
Trade safe
On the daily timeframe it looks like the 1.3900 handle has a little support and resistance but more support at 1.3800 level. Bearish momentum still looks strong!
We have to wait until friday to see any more GBP news with GDP on the agenda for both pairs and some goods data late on thursday for the USD.
Trade safe!