GBPUSD inverse H&S pattern suggests 500 pips upside
Updated
The GBP/USD pair is triggering an inverse head and shoulders pattern if we ignore the March push and June 12th false breakout, and the pattern suggests a potential gain of 500 pips, reaching $1.3325. The pattern will remain in play as long as the price trades above Friday's low of $1.2751.
The push higher of 500 pips might take a few weeks, and given the tight stop loss, there is no need to keep a bullish position all the way to the target to obtain a good risk to reward ratio.
Weak US ISM data, rising weekly continuing claims, and hawkish comments from Bank of England members contribute to short-term bullish sentiment.
As always, do your own research and proceed with caution. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
The push higher of 500 pips might take a few weeks, and given the tight stop loss, there is no need to keep a bullish position all the way to the target to obtain a good risk to reward ratio.
Weak US ISM data, rising weekly continuing claims, and hawkish comments from Bank of England members contribute to short-term bullish sentiment.
As always, do your own research and proceed with caution. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Note
They say you can't go broke on taking profits. Well, it would not surprise me if some traders take partial profits and plan to buy on dips. Above 1.29, the short-term trend will remain upwards.
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