24 Nov 2015

GBP/AUD: HEAD AND SHOULDERS PATTERN TRIGGERED

GBP/AUD H4

The rate has broken the head and shoulders pattern which had formed at the larger falling wedge upper boundary.

Yesterday it tested the former neckline support as the new resistance confirming the pattern's validity.

The immediate attention should be turned to the 61.8% breakout target at 2.0805 - a level which also coincides with the October's low.

The 100% breakout target at 2.0575 may be more difficult to achieve as there's the possible massive head and shoulders pattern neckline/ falling wedge support around this level and a daily close below it is needed to trigger more donwside continuation. As long as this condition isn't met, further range-bound trading is expected.




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