Head & Shoulders on the GBP/JPY - Short opportunity

5 ago 2017

GBPJPY

The pound had been hammered the last few days in this week of trading (week 31) but it seemed to really stop the strong movement (first impulse leg) and began to subside... Or did it?

After a brief view at the Sterling Yen behavior I jumped inside the 1H chart (Which I rarely do) and found an interesting and decades old pattern there - you guessed it - Head and Shoulders.

Entry point will be after seeing that the pattern broke - If there would be a gap I suggest waiting for the retrace to the structure (After studying many weekend gaps, it seemed that these gaps were closed at the first couple of hours of trading)

TP at 90 pips from the neckline (such is the rules of a H&S formation)

SL above the previous structure level (which is the right shoulder)

Good luck traders!