Hello Traders,
we noticed a very clear Head and Shoulder of inversion on the EURGBP.
Trading volumes slightly decreasing also confirm the bullish exhaustion and the bearish scenario becoming more likely. The 0.886 level, which is the neckline of the H&S is now being broken. We would wait a more wide movement to the downside to reduce at minimum the risk of false breakout with the price jumping back above the neckline.
As usual, two different targets are provided. One more conservative, corresponding to the previous lows, and the more aggressive one, whose Take Profit corresponds to the target of the H&S formation as per textbooks.
What do you think of this idea? What are the tool you use to confirm or reject an Head and Shoulder Pattern? Let us know!
we noticed a very clear Head and Shoulder of inversion on the EURGBP.
Trading volumes slightly decreasing also confirm the bullish exhaustion and the bearish scenario becoming more likely. The 0.886 level, which is the neckline of the H&S is now being broken. We would wait a more wide movement to the downside to reduce at minimum the risk of false breakout with the price jumping back above the neckline.
As usual, two different targets are provided. One more conservative, corresponding to the previous lows, and the more aggressive one, whose Take Profit corresponds to the target of the H&S formation as per textbooks.
What do you think of this idea? What are the tool you use to confirm or reject an Head and Shoulder Pattern? Let us know!