H&S was formed but not confirmed. We instead got a bounce of the neckline.
Possible scenario for next week:
Break higher.
After breaking the upper trend line of the downward channel we move higher and try to break the first resistance zone at 1.4150 - 1.4175. This was an area of strife in the past as indicated. It was on multiple occasions in the past as you can see from the various wicks.
RSI and stoch are both well directed for a bull run, no divergence and not overbought on 4H chart.
On daily you could even argue a reverse H&S being formed. Especially given the last low wasn't a lower low but a higher low, we might see new highs, i.e. above 1.45, 1.46, etc. But this is something for the future, if we ever break higher of course. We've been in a range ever since beginning of March so I first want to see that level getting torn down.
If we move lower again, say somewhere around 1.4050 - 1.4030 the above is negated and we could see even lower lows anyway.
However, my bias is towards the upside. fundamentally I believe talks about a Brexit have been played like a broke record and we might see a relief rally.
P.S.: On the (IMO) off chance price does break lower, I'm aiming for short with preferred tp at same distance of neckline to head of H&S that would then be confirmed.
Possible scenario for next week:
Break higher.
After breaking the upper trend line of the downward channel we move higher and try to break the first resistance zone at 1.4150 - 1.4175. This was an area of strife in the past as indicated. It was on multiple occasions in the past as you can see from the various wicks.
RSI and stoch are both well directed for a bull run, no divergence and not overbought on 4H chart.
On daily you could even argue a reverse H&S being formed. Especially given the last low wasn't a lower low but a higher low, we might see new highs, i.e. above 1.45, 1.46, etc. But this is something for the future, if we ever break higher of course. We've been in a range ever since beginning of March so I first want to see that level getting torn down.
If we move lower again, say somewhere around 1.4050 - 1.4030 the above is negated and we could see even lower lows anyway.
However, my bias is towards the upside. fundamentally I believe talks about a Brexit have been played like a broke record and we might see a relief rally.
P.S.: On the (IMO) off chance price does break lower, I'm aiming for short with preferred tp at same distance of neckline to head of H&S that would then be confirmed.
Trade active:
Active since Monday stop at B/E and a bit extra.
Trade closed: stop reached:
Stop reached at B/E + 25 pips. Will be looking to enter again if the opportunity arises but won't take too much risk.
