We're now approaching our next support fractal on GJ. This is a critical area to watch.
What's the best thing to do? Drop down to a smaller timeframe and look for either continuation patterns or reversal patterns.
My bias remains bearish as our broken wedge on the weekly chart is still very much active.
We have a wedge that's formed on the 15m which coincides with what appears to be the third touch off our descending triangle.
With the upcoming news on the GBP we most likely will not be taking this trade but it's a good study opportunity.
A break and close below this structure will trigger shorts and lead to our next bearish impulse. The first target is the 61.8 fib extension level - When we hit this level move your SL to breakeven and let it run to the extended take profit level.
A very clean H&S setup on the daily. With a break and close below the neckline shorts will be active with a TP just shy of 1500 pips. With the proper stop loss just above the right shoulder we have a very appetizing risk to reward.
Fundamentally this setup is perfectly in line with the strong GBP weakness that we've been seeing.
This trade will certainly take...
Wait for a break and close below the neckline. Move stop loss to breakeven when we hit the lower trendline and depending on the price action considering closing half of the trade.
