This bearish H&S pattern on the GBP/AUD wasn’t the cleanest of patterns but did end up delivering over 550 pips in a bearish follow through move.
24th March 2014: This bearish pattern and TS signal was noted in my write up on the 24th March 2014.
The bearish H&S pattern setting up on the daily chart looked to come back to life last week. There was a break of the neck line, which was subsequently tested, and it remains to be seen if there will be bearish follow through now. I received a TS ‘short’ signal off my Friday night candle.
Daily chart H&S pattern? The theory with these patterns is that the suggested bearish move would be equivalent to the height of the H&S, that is, the height of the ‘Head’ from the ‘neck line’. The height of this H&S is about 1000 pips or so. This would suggest a target for any bearish follow through to be down near the 1.70 region which isn’t too far from the weekly 200 EMA.
GBP/AUD weekly
GBP/AUD daily
GBP/AUD 4hr
14th April 2014: This bearish move looked to have completed by April 14th.
The daily chart’s H&S pattern has given up to 550 pips of a possible 1000 pip move.
GBP/AUD daily
