By Admiral Markets
Bad Services PMI data for GBP/USD today rejected the price from the top of the right shoulder that is clearly visible on H4 chart. Services PMI is likely to be down, because its mainly the finance sector that may leave the UK if they are no longer in EU. Some automotive industry may leave (eg Nissan), but new manufacturing may begin again because of cheaper GBP Remember the Banks need access to EU markets so Headquarters may shift and that is not good for GBP.
Technical analysis is aligned with fundametal analysis and as you could learn at Price Action Trading School my approach is to trade Head and Shoulders is to short it from the top of the right shoulder. 1.3250-80 zone provided short opportunities in now moment and history so next pullback could be short too. If we don’t see a pullback short on rallies (on lower timeframes) is still the valid option. Bears are targeting 1.3100 then 1.3060. If we see the breakout below 1.3060 next target is 1.3000 and eventually 1.2790 during next weeks.
For intraday price action watch for rallies to short into towards 1.3100-1.3000 (with 1.3060 as support for new breakout).
Follow @TarantulaFX on twitter for latest market updates
Article by Admiral Markets
Free Reports:
Source: GBP/USD rejecting from the top of the right shoulder
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.