Pound Dollar Technical analysis Could Target 1.4900

As I mentioned in my last post regarding bullish pattern occur in Pound Dollar pair and immediate action was seen and even before Ahead of FOMC Report price has managed to hold on to gains and did no liquidate after testing the highs of 1.4610-50 area, and this could be a good sign for bulls to attack more as I have spotted an Inverse Head & shoulder price Action pattern which need validation.

History of patterns In Forex

Every pattern in trading has few strong and valid points and as well as weak points but I always back my decision and give this setup 7 out 10 as Price strong monthly consolidation pattern is about to break, and ahead of key event and if Somehow we see some bullish pattern continuation in next couple of sessions, then I am expecting this strong move in Sterling.

Fibonacci Trendline and Forex patterns don't work

Even though I put lot of efforts in learning and being not a very big fan of those fibonacci, trendlines and Chart reversal patterns like Head & Shoulder pattern, but If we see logic in those reversal patterns then there is no harm is lowering the risk at test and risk 2% or max 3% to make 10-15% of the account and that really what all expect when we first look for a trade in our favor.

The reason why I am quite subdued on this setup (not because of Head & Shoulder Pattern),because we all expect new cash flows in the days to come as we expect a big key events from both Federation and BOE.

Time For Sterling bulls to breach the resistance

This really can put up lot of pressure on sterling which has Under-perform in last few months. even though this pair has the reputation of Safe-heaven and also has performed well as safe heaven currency as We all know UK is strong enough economy to cope with recession and any global crisis such as Crude and Global Slowdown.
Pound got a hit due to reduction in global crude prices and it has been the prime reason for weakening of Single Currency Pair, because U.K rely on Brent crude to supply in Asian countries and hence decline in currency pressure was seen during that period but as Oil has recover strongly we can see the same happening to the Pound as well.