1. header GBPUSD-min

Price Action Trading Report – 2016 Report Revisited

I’d like to revisit a video report I made nearly two years ago.

I recorded it on 1st March 2016.

It was called: “GBP/USD at 0.68: It Could Never Happen, Could It?”

You can watch it here if you want.

But if you’d prefer the short version, in that video I’m basically looking at the technical case for GBP/USD to drop by 8,000 pips.

It was a preposterous projection, I’m well aware of that.

But now, nearly 2 years later, it’s just a tiny bit less crazy.

This is the 25 year head and shoulders pattern we were looking at:

2. GBPUSD HEAD SHOULDERS SMALL-min

This was before Brexit and before Trump.

Brexit smashed that neckline in June 2016.

And price has held below there ever since.

3. GBPUSD right shoulder1-min

So what’s next?

Well, let’s fast forward a few months. Looking into 2018, that neckline (around the 1.40 area) is critical.  That is huge resistance.

The United Kingdom had to vote to leave the biggest economic and political union in the world to break below that level.

And it will take something pretty big to get above it again.

As daft as it sounds, if we stay below 1.40, GBP/USD could be a “sell rallies” trade for the next generation.

The “measured move” price target for a head and shoulders pattern is the same as the distance between the head and the neckline. This would imply a price target of 0.68.

I know. It’s bonkers.

But for any of you who are scoffing at this, remember – the trend is your friend, right?

Well, there has been a bear trend in GBPUSD for the last 100 years.

4.gbp 100 years-min

Could the best opportunity in years to join that trend be coming up in the next few weeks?

We’ll soon see.

If you are interested in taking some positions in this market, there will be a 1 hour live workshop before the year end. There, we’ll look at this set up in detail, examine entries, stops, targets, everything! Elite Package members will get an invite in their email inbox soon. Not an Elite Package member? It’s not too late, you can sign up here.

The PAST Guidelines are available in the free eBook available here, please ensure you understand the strategy completely before considering these set ups.

All comments welcome.

DISCLAIMER & COPYRIGHT

This update is based on my analysis on my charting package. It may differ to yours as it can be affected by time, market movements, charting packages and broker prices. I accept no liability for loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on any information in this report or analysis.