GBPAUD Inverse H&S formation
Is forming an Inverse H&S formation and thus testing the right shoulder suport zone 1.8000-1.8050. For a downside reversal and a higher probability of the short trade entries, we need to see a confirmed break below 1.8000. A bounce here is required for a right shoudler to be formed and for an upside reversal to test 1.8500 neckline. The overall medium-term is downtrend but we need to see a confirmed break below 1.7800 to see extension downside. This looks as much as rounding bottom as well after the big dowside correction from 2.0400.
Note – We are inclined to long trade entries with the stop loss below 1.8000
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