GBPAUD breaks higher

I have a hard time playing a head and shoulder (inverted in this case) pattern without an “arm” to the left of the chart, but this pattern can’t be ignored. The #GBPAUD is setting up a possible inverted head and shoulder pattern with a target at the 1.9600 level.

I tend not to trade these patterns, but the fact is that we had a triangle breakout back in May 2021, and this break higher over the last couple sessions look similar. A daily close above the 1.9000 level would be a big warning for bears and a move above the 1.9170 level would be a straight up breakout which you may not want to stand in front of.

Blake Morrow