Inverse head and shoulders on cable
There is a beautiful example of an inverse head and shoulders pattern on the DAILY GBPUSD chart. It is unfortunate that I cannot post charts here. But it is super amazing this particular pattern because price took out a trendline down from the 2.0340 peak three days ago, and then price retraced back to the trendline and then back up to create the right shoulder of the pattern. So in order to trade this chart pattern, I will wait for price to break the neckline which is at 2.0024. At that point, I will watch the price action, hopefully a move up then retest of that price then I will feel good about entering a BUY trade. Since this is the daily chart, there is potential for quite a large move. Measure from the head (1.9600) to the neckline (2.0024) and you get 424 pips for the target. So that would put the target at 2.0448, but I see that the previous peak was at 1.0395, so I will be targeting that instead. I do also see a trendline down from the peak at 2.1148 some weeks ago, it now comes in at 2.0135 area, so will have to watch how price interacts there. Of course, with all chart patterns, nothing is 100%. The neckline may not break to the upside or there may be a fakeout, so much will need to be taken while trading this. But head and shoulders pattern do work nicely very often!! Good luck.