GBPUSD - Key area

So following on from my post yesterday my bullish trades are currently in profit. with Stops at entry and partial profit taken. I have taken a look at the bigger picture and I can see a potential HS pattern emerging. I am using the shown resistance for my target on my longs as this is the level to the left shoulder and the underside of the broken trendline. If we see a break of this resistance we should at least go back up to yearly high and potentially break that high.

If however we see rejection at the level of the trend and right shoulder, with a strong bearish close I see this going down to the shown level.

A potential scenario being we continue bullish until the much anticipated Jackson Hole Symposium which strengthens the $ sending this pair into a free fall.

Kommentera:

It looks like we have broke down creating lower lows and lower highs. To me this means that the right shoulder has peaked just below my target reagion. I have closed all me longs and am now short on this pair to complete the push down and the completion of the bearish HS pattern