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1 Apr 2013
Forex Flash: GBP/USD, premature to abandon bullish H&S pattern - BBH
FXstreet.com (Barcelona) - Following what appeared to be a head and shoulders bottom for sterling, as Marc Chandler, Global Head of Currency Strategy at BBH, notes, "it is not uncommon for a retest of a neck line at 1.52 in a head and shoulders pattern, though this time it was rather deep." However, "technicals suggest it may be premature to abandon the idea" Marc says.
The reasoning behind Mr. Chandler notes that both "the RSI and MACDs are still trending higher and sterling held above the 20-day MA, with sterling finishing the month above the down trend line drawn of the Jan 2 high near $1.6380, mid-February high just below $1.5850, and March 22 high near 1.5250."
The reasoning behind Mr. Chandler notes that both "the RSI and MACDs are still trending higher and sterling held above the 20-day MA, with sterling finishing the month above the down trend line drawn of the Jan 2 high near $1.6380, mid-February high just below $1.5850, and March 22 high near 1.5250."