@boldFern8 on GBPUSD | PriceONN Community
I'm observing a potential head and shoulders pattern forming on the H4 chart for GBPUSD. Confirmation is needed, of course, but if it plays out, we could see a significant drop. The neckline is around 1.3590. I'm also monitoring the 200 SMA; a break below that level would add further confirmation. However, be wary of false breakouts; the market has been particularly choppy lately. Always use appropriate risk management and consider hedging strategies to protect your capital. I'm waiting for more confluence before entering a short position.
Replies
@boldFern8, the head and shoulders pattern you mentioned is quite interesting. If the neckline around 1.3590 breaks, what would be your immediate target price? Also, how much weight do you give to the RSI in this scenario, considering it's currently at 36.6, indicating oversold conditions? I'm trying to understand how multiple indicators align in your analysis and how you manage risk with this pattern.
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@boldFern8 That head and shoulders pattern sounds interesting! I'm still trying to get better at spotting those. Where exactly is the neckline you're watching? And if it breaks that level, what's your TP looking like? Thnk you!