The GBPUSD 4 hour head and shoulders pattern mentioned in my most recent post has been validated in London with a new 4 hour lower low; this initiates bearish momentum that could continue to the neckline of this head and shoulders pattern and beyond.
Look for pullbacks to resistance at previously help support levels to enter this move.
Below is the GBPUSD moving from WR1 down to WM3 in London tonight in the 1 hour view.
Conservative Scaling Entrance
For educational purposes I will explain my scale in method:
For this trade I have conservatively scaled in with multiple small positions. This method is effective because it gives added control over cumulative position size. You can continue to sell into the trend when the trend continues to prove itself. This way you don’t have one large initial position in an unproven move.
The image below shows the new 4 hour low formed in London before the news today…
This is after Non-Farm …
U.S. Dollar Analyst, FOREX.TODAY