Post-Brexit Head and Shoulders Pattern
Updated
Hi traders,
For more of the long term traders among you, here is a head and shoulders pattern that is nearing completion on the EURGBP weekly chart.
The pound has been relentlessly choppy since last year's referendum. Is it possible that we're about to see some semblance of stability again?
Personally, I can't see the fundamentals doing this technical analysis any favors and the sterling looks unlikely to recover most of its losses since Brexit. However, the neckline will be a key area to watch over the next couple of weeks.
For more of the long term traders among you, here is a head and shoulders pattern that is nearing completion on the EURGBP weekly chart.
The pound has been relentlessly choppy since last year's referendum. Is it possible that we're about to see some semblance of stability again?
Personally, I can't see the fundamentals doing this technical analysis any favors and the sterling looks unlikely to recover most of its losses since Brexit. However, the neckline will be a key area to watch over the next couple of weeks.
Note
Since posting this three months ago, we've seen a bullish run to the shoulder level, a rejection and bearish run to the neckline, and another bullish run to the shoulder level. Price is not trading above the shoulder level, so the next few days and weeks are key. If we see the shoulder level acting as support, sterling may make further losses.
This coincides with fundamental sentiment, considering the instability the UK election has cause, couples with ongoing Brexit uncertainty.
Note
*now
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