Head and shoulder trend reversal on EURGBP
On the weekly timeframe we can see many rejections and reversal candles on the 0.90000 thousand pip quarter point showing us possible reason for a reversal of the trend. On the daily chart you can see an ascending triangle forming for a breakout, and a shooting star candlestick right at the 0.9000 level to further confirm a bearish trend. Now down to the 4 hour chart you can see a possible formation of a head and shoulder pattern but still only in the right trough and needs to form the right shoulder. Retracement from the most recent swing high to the swing low shows a 50-61% zone right where the right shoulder should find resistance for a lower high. Taking a sell here is a little risky, but with the addition weekly and daily price action analysis we can learn towards a trend reversal. When it comes, watch for break of the neckline from the troughs of the two shoulders.
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