GBPCHF Head and Shoulders Pattern
Updated
There is a head and shoulders pattern on the 4H timeframe on GBPCHF that has formed at a resistance level and now starting to show weakness as the uptrend runs out of steam.However I strongly recommend waiting for the neck line to be broken first and then enter a short trade.Also another confluence for this trade is the RSI divergence suggesting a downtrend.The trade setup for this would be to enter at the break of the neckline(wait for candle close) which is also a flip zone( resistance turned to support) and set stop loss at 1.14444 and take profit at the second support level at about 1.11679
Trade Setup:
Entry - at the break and close of neckline
Stop Loss - 1.14444
Take Profit - 1.11679
Trade Setup:
Entry - at the break and close of neckline
Stop Loss - 1.14444
Take Profit - 1.11679
Note
It is now breaking the neckline in a strong bearish candle.Now is the time to get sell when the candle closes after 15 minutes.Set stop loss to 1.14124, just above the high of the current candle and take profit to 1.11679, just the start of the second zone on the chart above.
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