Morning traders
Looking at a great setup on British Pound versus US dollar with Bearish Engulfing candle pattern forming on the daily charts between Friday and Monday and drill down to the 4 hourly charts and we see a head and shoulders pattern forming. Both suggesting British pound is about to head lower versus US dollar.
Additionally we have bearish divergence on RSI charts with higher high in cash price which formed the head of the head and shoulders pattern but only forming a lower low on RSI as volume supporting the price action declines.
Stops set just above the head level and targeting a move back down to sub 1.21 sets up a 3 to 1 risk to reward.
If you are interested in more of our trades get in touch, offering a 30 day free trial currently
good luck trading this week!
Looking at a great setup on British Pound versus US dollar with Bearish Engulfing candle pattern forming on the daily charts between Friday and Monday and drill down to the 4 hourly charts and we see a head and shoulders pattern forming. Both suggesting British pound is about to head lower versus US dollar.
Additionally we have bearish divergence on RSI charts with higher high in cash price which formed the head of the head and shoulders pattern but only forming a lower low on RSI as volume supporting the price action declines.
Stops set just above the head level and targeting a move back down to sub 1.21 sets up a 3 to 1 risk to reward.
If you are interested in more of our trades get in touch, offering a 30 day free trial currently
good luck trading this week!