Tag: Head and Shoulders

GBPUSD – Weekly divergence points to downside correction

GBPUSD – Weekly divergence points to downside correction

Technical Analysis
It is without a doubt that the British Sterling has been one of the strongest performing currencies among the G7 since last year. Although the Kiwi Dollar has been gaining strength, the British pound has been consistent and steady over the year which makes it a prime currency pair to be long on. Since the start of the rally, traders who have been long have been aiming for the 1.7 level. So far, price has failed this level quite a few times, coming as close to 1.6995. While there have been dips during the course of the rally to 1.699 it cannot be justified to call these dips a correction. In this analysis, we present the GBPUSD correction to the downside along with a hedge trade in GBPJPY to offset any risks from the Cable's short term short trade. GBPUSD - Weekly Charts Analysis On th...
USDDKK Analysis – A long term short trade opportunity

USDDKK Analysis – A long term short trade opportunity

Technical Analysis
The US Dollar, Danish Kroner makes for an exotic currency pair to trade which usually misses the attention of many forex traders. From a technical perspective, the USDDKK paints a beautiful long term picture with current price action validating the technical pattern that has been formed. Starting with the weekly charts of USDDKK, we notice a very clear Head and Shoulders pattern that is formed, with the neckline coming in at 5.5740 region. The neckline was broken and price did drop a bit before retracing the moves and currently looks poised to test the neckline level. This brings us to the question of entry. While it is no brainer to short USDDKK from the neckline level, taking a more informed trade decision would help traders in gaining a better price for entering the market. ...