A very prominent reversal is spotted on GBPUSD considering the following:
1- Head and shoulders appeared as a reversal structure which is an indication that long positions are being closed i.e. GBP might start to lose the battle against USD.
2- Broken lower trendline indicating a shifting bias to downside.
3- We are still stuck inside the daily tf ichimoku cloud, it has not indicated a reversal yet.
4- Last two monthly candles were a bearish engulfing after a shooting star (inverted hammer) i.e. trend converting to bear
What to expect?
1- I have marked a few structure based targets. First of them is 1.2310 which is the target of the head and shoulders as per the definition.
2- The extended target of head and shoulders 1.1802 is actually a support line based on historic response of the zone.
3- The yellow target box is the all time low marked by cable in the history, there is a chance to nail perfect double bottoms there unless it breaks low further.
4- The retracement levels sketched on the chart are the basic fibonacci levels. I am quite sure you already know how to interpret them.
When is this idea invalid?
1- If the price blows the top at 1.3140.
2- Head and shoulders are invalid if price breaks higher than 1.2820 but that does not invalidate the trend bias as long as 1.3140 is intact. Should head and shoulders invalidate, look for the rejection from the retest of the red trendline to sell again. It is important to have a prominent rejection!
Best of luck and happy trading :-)
1- Head and shoulders appeared as a reversal structure which is an indication that long positions are being closed i.e. GBP might start to lose the battle against USD.
2- Broken lower trendline indicating a shifting bias to downside.
3- We are still stuck inside the daily tf ichimoku cloud, it has not indicated a reversal yet.
4- Last two monthly candles were a bearish engulfing after a shooting star (inverted hammer) i.e. trend converting to bear
What to expect?
1- I have marked a few structure based targets. First of them is 1.2310 which is the target of the head and shoulders as per the definition.
2- The extended target of head and shoulders 1.1802 is actually a support line based on historic response of the zone.
3- The yellow target box is the all time low marked by cable in the history, there is a chance to nail perfect double bottoms there unless it breaks low further.
4- The retracement levels sketched on the chart are the basic fibonacci levels. I am quite sure you already know how to interpret them.
When is this idea invalid?
1- If the price blows the top at 1.3140.
2- Head and shoulders are invalid if price breaks higher than 1.2820 but that does not invalidate the trend bias as long as 1.3140 is intact. Should head and shoulders invalidate, look for the rejection from the retest of the red trendline to sell again. It is important to have a prominent rejection!
Best of luck and happy trading :-)
Comment:
I hope you guys are enjoying the bear run like me lol but tbh I dont have a reference for a sharp entry at the moment, will update you guys soon as soon as i find something. It is very likely going down continuing the rally, but if we are to enter now, I dont have a good reference for for stop loss. Maybe on monday we get some consolidatory move to provide a better entry. Stay tuned I will update here as soon as I get a confirmation! Cheers and happy trading :-)
Comment:
The target of head and shoulders
is approaching very soon in the early 1.23xx, now we may
have two possibilities:
1- Either bounce here to reach back the 1.26xx
range to make an even bigger head and
shoulders.
2- We break lower than 1.23xx range to make
it as far as 1.18xx as an extended target
is approaching very soon in the early 1.23xx, now we may
have two possibilities:
1- Either bounce here to reach back the 1.26xx
range to make an even bigger head and
shoulders.
2- We break lower than 1.23xx range to make
it as far as 1.18xx as an extended target
Comment:
Patience bears reward, wait for wedge breakout to buy. Targets marked in the chart. Have patience, best of luck and happy trading!
Trade closed: target reached:
Target of the main idea hit
Comment:
Picture is rather unclear from the intraday perspective. However, since we have broken lower than 1.2300 mark, therefore, we should expect 1.18xx-1.19xx soon. But, since we dont have any clear entry yet. So, we will wait! Cannot enter with 60 pips stop loss reference!
Comment:
Dont worry, just be patient and wait for a proper entry to strike, best of luck and happy trading!