Will GBP breakdown?

Good Morning Dynamic Traders

What a lovely morning it is today. Hope you've all had a great start to the trading week.

As you know, GBP has been on my watchlist recently as I've mentioned it on the blogs a couple of times now. This morning price is testing the S level again - certainly not the first time! End of trading day today will be very interesting to see if we finally have the awaited BOB. We did have a BOB attempt yesterday which failed, so we need to be cautious of any FBO's. This current ranging period has lasted a few months now so as dynamic traders we'd like to see a clear BOB before entering any trade.
















Hopefully you all uncovered the H&S chart pattern, which Clayton also talked about last week. There are also other confluences to support a possible new trend down. We now also have a false bar forming at the bottom on Stochastics. But as mentioned time and time again, we must wait for the market to make it's move and give us a confirmation. As we know, the markets could do anything! The US market opens again today after a Bank Holiday so there may even be some unexpected volatility.

Please always carry out your own analysis. Have a great trading day.

Sonia Molina