EURGBP Short
Updated
Potential head and shoulders pattern forming along with a potential short term cypher.
Predicted movement shown on chart.
Observe to see what happens in the 0.895 area to see if it completes a cypher with 0.5 fib level TP1.
If price rejects this level it could also be completing the right shoulder of a head and shoulder pattern.
I would look for a short position with a TP1 at the neckline of the H&S as price could bounce again from here. On the other hand it could break the neckline and begin a bearish run.
Bearish divergence on the 4hr right shoulder, followed by strong rejection from the 0.908 price level.
COT data is not clear so not taken into account much for this idea. Both currencies are short bias on leveraged accounts.
Predicted movement shown on chart.
Observe to see what happens in the 0.895 area to see if it completes a cypher with 0.5 fib level TP1.
If price rejects this level it could also be completing the right shoulder of a head and shoulder pattern.
I would look for a short position with a TP1 at the neckline of the H&S as price could bounce again from here. On the other hand it could break the neckline and begin a bearish run.
Bearish divergence on the 4hr right shoulder, followed by strong rejection from the 0.908 price level.
COT data is not clear so not taken into account much for this idea. Both currencies are short bias on leveraged accounts.
Comment
Right shoulder seems to be forming well.Look for short trade setup on the neckline break
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