Another head and shoulders pattern on GBPUSD
Wish I could post the beautiful head and shoulders pattern on the weekly chart on GBPUSD here! The neckline of the pattern is sitting at 1.9400, this has been very strong support for many months. Can it break down? If USD continues to be strong as it has lately, then it is quite possible. If 1.94 does break, the first target sits at 1.8400, thats 1000 pips…. of course, being the weekly chart, this will not break and fall 1000 pips, most likely. It will take several weeks to get there I suppose. In fact, the next support down would be 1.9100 first. If price cannot break 1.94, then continued ranging up to 1.9800 will happen. Remember some weeks ago there was an inverse head and shoulders on the daily chart, actually two different inverse h&s patterns, both failed to the downside for several hundreds of pips. Is this a clue that price wants to continue retracing down?
Also, I have placed a buy on my AUDJPY swing play at 100.90, stop loss is below the 100sma on the 4h at 100.40, targets are 102.00, then 103.00. Will keep you posted.