Charting the GBPUSD: Head and Shoulders Update

The weak UK GDP number caused the GBP/USD to sell off aggressively today, breaking the uptrend in the currency pair. Earlier this week, I posted a chart about a head and shoulders formation that could be forming in the GBP/USD. At the time, I said that it was a bit premature but after today’s price action, its certainly looking like this could be the start of more significant losses in the currency. I’m not so greedy and will be happy with a move to 1.5650, but where do you see the neckline?

6 Comments

  1. whether neckine will be formed at double bottom 1.5350 but this H&S is really nice plus today sell off. Im looking to add small position at 1.5900 and looking target as same as you 1.5650. Thanks for point out the pattern.

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  2. At the moment I am long this pair and I’ve placed the sl at 1.56 (1.543 would be BE). I favour the pound over the dolar for the time being, if it goes to 1.54 I will buy again. Although the weak GDP numbers can be a prelude to a new picture, given the vat hike and the significant inflation (real unofficial running at 6%) with no pay rises. I am also shorting the pound against NZD, AUD and ZAR.

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  3. Hey neck line hunters, I see a very steep neck line at 1.62 of an over 2 month long H&S pattern…seriously, after the stock market correction is over, I expect GBP/USD to trade above 1.70 before the end of June. Lets play.

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