Inverted HNS — Reversal of the downtrend

2023年1月17日

After the ceasefire in Ukraine, many traders are cautiously optimistic as the markets may be turning around. The appearance of an inverse head and shoulders pattern hints at a possible reversal in the downward trend since the Ukraine invasion. This could be a sign of a positive shift in the markets and could potentially open up some great investment opportunities. Traders should be sure to watch the markets closely for any potential opportunities that arise in the coming weeks.

The appearance of bullish flag pattern in the right shoulder might also indicate a continuation of recent uptrend.

The price is currently in a strong weekly resistance zone. This is a strong resistance zone that matches 0.5 level of weekly Fibonacci retracement, also it is the neckline of the inverse head and shoulder pattern. I am eagerly awaiting the break of this resistance, which will be a big big opportunity. For the breaking, I am looking for breaking candle body to be greater than 1.5 ATR; and if there is no break, I am looking for reversal candle which could be e decline from the resistance zone.


Additional confirmations
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The cables most negatively correlated EURGBP pair is also in its weekly resistance zone. This pair is in the process of making a double top chart pattern in 4H TF. This could indicate a rejection from the resistance zone and if that happens, the price will face down as the GU faces the opposite direction.