EUR/GBP Head and Shoulders turns into Inverse H&S

28 ก.ค. 2019

It looks like the short, which appeared to be a no-brainer, has completely turned around. After dumping through the neckline of the head and shoulders pattern, it bounced upwards with large volume and has broken through the downward resistance line. I call the big green reversal candle the Boris Johnson candle. Currencies depend on fundamental economic news, and a moron as the new leader of a country is certainly no bullish news, so it might have been foolish to expect this short to be a long-term thing.
It will be important to see what it does at the potential new neckline of the inverse H&S. If it gets rejected but bounces upward in the same manner as the left shoulder, this could turn into a real inverse H&s and break even previous highs.

29 ก.ค. 2019

บันทึก

Ok, the pound is so weak that it didn't even bother to build a shoulder. Went straight through the neckline and to the moon. Perfect example of how fundamentals are far more important for forex trading that TA. So many people when short because it had reached a resistant line, but I can only imagine how many people got wrecked today by that moonshot. Congrats to all that went long, and thanks to Mr. Boris Johnson!