Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
Cable increased at last against the Greenback as I expected before, have a look at the weekly chart below, there is a possible H&S pattern on this timeframe:
This pattern shows that price might reach 1.6000 level again before considering to plunge again and break 1.5350 neckline. Also we have got another H&S pattern in the daily chart which you can see it in the figure below:
This is a down-sloping H&S pattern and I said this because of the down-sloping neckline which is trendline #2 in the chart above. Trendline #1 has connected previous two shoulders and now price is going to retest that trendline at around 1.5800 price level.
So watching for a possible short setup here would be good as we have got a bearish gartley pattern in the four hour timeframe too:
But have to note that beware of that long daily bullish candle and any selling action here needs confirmations. Despite of this Harmonic pattern I would rather prefer to go short higher around 1.5800 at the retest of that trendline. Price might retrace some and reach 1.5660 before putting on the accelerate pedal and go higher.
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