GBP's historical "Complex head and shoulders top" (bear market)
Looking at the historical charts of British pound (since 1953) I noticed that it formed quite a fine complex head and shoulders with double top and multiple shoulders. This pattern is described in detail by Thomas Bulkowski in the Encyclopedia of Chart Patterns. The performance of this pattern in bear market is 8 out of 21. The breakout from neckline occurred in the early 2017. In 60 % of cases of "complex head and shoulders tops" pullbacks occur in 60 % of cases (in bear market) what we have just witnessed. Price pulled back to neckline. Percentage meeting price target is 45 % and tall patterns perform better than short ones (we do have a tall head of 17 months span). If the rally meets the price target, it will be the ultimate historical bottom for GBP, lower than the decline of 1985! This will cause economic turmoils in the UK (situation is already tense because of Brexit turmoil) and possible secession of pro-EU Scotland. This decline is not surprising as GBP has been in decline since 1953 - it dropped from 2.81 to 1.35 against the USD in the course of 68 years). I believe this is a great chance for long term sells of GBPJPY (JPY as standalone index already shines bullish and is going to rise through summer and fall), GBPCAD (as CAD is to strengthen through the summer, from early June I would say), GBPCHF (frank is also strong and is starting a bullish rally this month, bullish signs already in play), GBPNZD (from July when Kiwi will turn bullish) and GBPUSD too. We will see massive bearish rallies on those pairs this year. EURGBP isnt a good choice as both currencies are in decline (forming a consolidating market), though GBP is gonna move down faster.
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