GBP/USD - Will it see a bullish break from inv head and shoulder
Cable is running higher in anticipation of 'remain' vote victory. The result the pair is trading well above the inverse head and shoulder neckline seen on the daily chart at 1.4830.
However, it is premature to call a bullish break here, given the daily close needs to be above 1.4830. Even if we do have a day end closing above 1.4830, it is slightly risky to expect a fresh rally, given the conditions under which the bullish break happened.
Note the market is pricing-in a 'remain' vote victory by having a look at the polls. This means there is a scope for "buy the rumor, Sell the fact" kind of trade. Hence, the day end closing could be below 1.4830 or the breakout could turn out to be a 'fakeout' tomorrow/next week.
However, it is premature to call a bullish break here, given the daily close needs to be above 1.4830. Even if we do have a day end closing above 1.4830, it is slightly risky to expect a fresh rally, given the conditions under which the bullish break happened.
Note the market is pricing-in a 'remain' vote victory by having a look at the polls. This means there is a scope for "buy the rumor, Sell the fact" kind of trade. Hence, the day end closing could be below 1.4830 or the breakout could turn out to be a 'fakeout' tomorrow/next week.