On the GBP/USD daily chart, the “bears” was trying to return to the borders of the medium-term consolidation range at 1.21-1.231, but failed to do so.
As a result, the second shoulder of the “Head and shoulders” pattern was formed.
A successful test of the lower boundary of the upward trading channel can lead to the downfall of quotes towards 1.215.
On the GBP/USD hourly chart, the retest of the diagonal resistance in the form of the lower boundary of the upward trading channel can be used as a buying signal. In this situation, short positions should be opened from 1.2365 and 1.23 levels in the direction of the target 88.6% in the “Shark” pattern.
Recommendations:
SELL 1,2365 SL 1,242 TP 1,215
SELL 1,23 SL 1,2355 TP 1,215.
Origin: FX BAZOOKA
