GBPUSD: Pending for potential inverted head & shoulder pattern
On Week 34, GBPUSD did a break below the support zone highlighted in blue on Tuesday, 24th August but in the same week on Thursday, 26th August price still gush back up.
Even though on Friday, 27th August, price did a pullback, but what’s interesting here is that, it still gets supported at the support zone. This gives us an idea that price is still supported at the moment as the breakdown didn’t stay for long, meaning the bear wasn’t that strong enough to drive prices down further.
Instead, Week 34 was just a doji week where doji represent indecision of the market.
However, base on the chart pattern, we can spot some “potential inverted head & shoulder pattern” forming where it will only be confirm unless the neckline is broken.
Do look out for any trigger in the lower timeframe and if the potential inverted head & shoulder pattern is true, you may also just want to take note of the resistance level created in Week 34 before price can goes even higher.
One last thing to note is that, there is also a Fibonacci Retracement and Fibonacci Extension confluence at around 1.5680 levels where it also confluence with horizontal resistances in the H4 chart. If you want to know how Fibonacci can be used to predict future prices, do join us in the Free Forex Educational Seminar.
To find out more, you can join our free forex seminar where we are going to showcase Tflow®.
