GBPUSD – the cable after a series of violent falls in the first half of March this year and setting the all-time low at 1.1400 , it equally rapidly recovered lost pips and as a result made up 60% of the losses at the end of the month.
In June (11.06), the pair’s price reached 1.2760, and a pinbar appeared on the daily chart which triggered the falls. The price is already below the local trend line.
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In the H4 chart we can recognize the H&S formation, the neck line (green) has already been defeated and re-tested from below. During the re-test, a candle with a long top wick appeared, indicating a bearish attitude towards the British pound and a rejection of the neck line level.
The size (height) of the Head and Shoulders is 340p and if the market behaves in accordance with the theory, then falls of similar range can be expected, i.e. the supply target can be 1.2100.
Two demand zones 1.2310 and 1.2230 are an obstacle to reaching the target, which can slow down the falls and trigger corrective movements
Corrections can be a good opportunity to join sellers.
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