A friend of mine recently pointed out that if the Brexit vote was to unfold then what were the implications to the Cable or GBPUSD.
Looking on a higher timeframe (2 weekly) a clear Head & Shoulders pattern has emerged indicating that GBPUSD on the break off the neckline would drop and a potential target would be towards parity with the US Dollar. Of course, if the Brexit vote means the UK remain within the UK then this may become a false pattern, however the scenario and build up implies this pattern will be obeyed.
Sell stops could be placed below the neckline at 1.3682 for a target of 1.0. That's OVER 3500 PIPS!!! or decline of 26.75% a move only seen on the Swiss Franc early in 2015.
For more information please visit and sign up to my web page which should be released soon: www.ejfxtrading.com
Looking on a higher timeframe (2 weekly) a clear Head & Shoulders pattern has emerged indicating that GBPUSD on the break off the neckline would drop and a potential target would be towards parity with the US Dollar. Of course, if the Brexit vote means the UK remain within the UK then this may become a false pattern, however the scenario and build up implies this pattern will be obeyed.
Sell stops could be placed below the neckline at 1.3682 for a target of 1.0. That's OVER 3500 PIPS!!! or decline of 26.75% a move only seen on the Swiss Franc early in 2015.
For more information please visit and sign up to my web page which should be released soon: www.ejfxtrading.com
