Head & Shoulders Pattern Formed on GBP/USD !! #ShortHead & Shoulders Pattern on GBP/USD !!
The Head & Shoulder Pattern seemed to have formed on 4 Hour, I will wait for
Retest of Neck-Line before Shorting GBP/USD .The Risk to Return ratio is 1:3. It can be a really good trade if executed correctly.
Target is chosen by Measuring the Distance between Neck-line and the Head , further the same distance is then used after Break of Neck-line to establish correct Target area.
Stop loss is set where the Price is least likely to get hit hence the 1:3 RR.
note: Do your own analysis before taking the trade.
Analysis based on;
1, Price Action
2, Chart Pattern
3, RSI - Overbought/oversold zone
4, Candle-stick Pattern
Time frames used:
1 Hour
4 Hour
