Did you see the pattern?

Morning Dynamic Traders

The second day on the GBP closed only 27 pips below from where it opened and this morning doesn’t seem to be moving much either, but only time can tell.

Let’s find out why there was little movement yesterday.

To help us find out why there was little movement, we need to answer my question from yesterday first. The answer I was looking for was a Head n Shoulder pattern. I have marked out the pattern on the chart below.














It was this pattern that gave the signal for the big drop in price, and was the tool to use to capitalise on all those fallen pips. It’s times like this which is why my fellow JMA Zaheer uses the term “Love Taking”. The GBP was offering a lot of love with an easy setup.
The pattern also gave us a rough estimate of where price would be heading. This is the reason why price didn’t move much yesterday, because it had already fallen a lot. This isn’t to say that it won’t drop some more, price could be just having a breather, which is why we need to be patient.

Annoyingly I can’t think of the answer for the riddle. So looking forward to tomorrow to see what the GBP has done today and see if we have another opportunity for another trade, and to find out the answer.

Happy Trading

Richard