Today is one of the busiest days on the market in terms of the macro events in the past few months. We have rate decisions from the BoE and ECB, US CPI data, and job data from Australia. Nice, huh? In our trading, we try to reduce risk as much as possible, and we do that by not trading during such macro events. That is why today we will focus on DAX and WTI, but if you like the thrill, here you go, the small part about the EURGBP:
This pair is on a horizontal support at 0.888. We went there after the price created an H&S pattern and broke the major upwards trend lines. Currently, the price is creating a pennant, which is promoting a further drop.
About the H&S pattern... DAX is on the long-term neckline of the big H&S formation. As long as we stay above the blue area, buyers are relatively safe, but a breakout would be a major sell signal.
Continuing on the topic of H&S patterns, the right shoulder of the H&S formation is forming on WTI, and there is a smaller iH&S pattern inside this bigger H&S formation! Can you imagine that? Technical analysis is truly amazing. A breakout of the upper blue line is a buy signal and the breakout of the lower blue line is a trigger to go short.