The long awaited trend continuation pattern has occur on the GBPUSD. Monthly Chart still indicates that market is in a bearish trend. As market is still in the 1980s price level while making a new high in 2014 (Rejecting the previous one with a break of 08’s low). Giving GBPUSD a nice amount of legroom for traders to be in it.
As market enters the Weekly key zone, it was only a matter of patience for market to show signs of reversal. As you can see the second last candlestick, where market broke off 3 bullish price pushes, it was an indication of a potential entry. My trading strategy have not caught an entry yet till last week.
Being the same conservative me, I decided not to enter immediately but wait for a second entry point for me ; another sign of trend reversal on a smaller time frame. Daily Chart shows that market has a tough time bringing prices down for the past few days.
Spotted a Head and Shoulder pattern in the 4Hr Chart with led me to an entry on this pair. This entry puts in a 1:3.35 RR.
Hope you guys have managed to catch this trade last week!