If you have been following my blog, you will know from my previous post that there is a head and shoulder pattern on the 4 hourly chart of the GBPUSD and EURUSD.
After the price attempt to break above the neckline of the head and shoulder pattern, it failed and moved back down again shortly.
With my trend strategy giving me signal to enter a SELL trade on the EURUSD and GBPUSD, we have entered a SELL trade on both the pairs.
For the GBPUSD, it has starting to move down after a period of sideway moment thus giving us a good 70 pips profits at the moment.
For the EURUSD, it is still moving sideway and is reluctant to break below the support as shown on the 15 minutes chart below
If you take a look at the 4 hourly chart, you will see that it is actually trying to test the neckline of the head and shoulder pattern again and again which will become the multiple candlestick pattern I teach in my blog.
If the price failed to break above the neckline of the head and shoulder pattern, there is going to be a good down run for the EURUSD which you can profit from.
Do note that it is harder to trade the EURUSD than the GBPUSD at the moment as the higher time frame of the EURUSD is contradicting the lower time frame of the EURUSD.
If you take a look at the 2 picture above, you can see that the trend on the 4 hourly chart is UP while the trend on the 15 minutes chart is DOWN.
Just yesterday alone, we have 2 breakeven trade on the EURUSD as we attempted to SELL the EURUSD but we have entered another SELL trade on it again as my trend strategy gave me the signal to enter again.
Both the earlier trade get us 20 over pips of profits before the price reversed and hit our breakeven stop loss. This situation may continue until the price managed to push the price down to change the trend of the 4 hourly chart.
The good thing about this type of trade is that it will give you a very high risk reward ratio once the price started to move down.
If you are looking to trade, I will recommend you to trade the GBPUSD this coming week as both the higher and lower time frame are showing same down trend.
For those of you who are interested to join my course, you can take a look at the link below
For those of you who are interested to join my trade copier, you can take a look at the link below