Very strong bearish price action on the GBPUSD pair
The pair is in a clear downtrend according to the daily chart, this way having just created in the last 2-3 days the current lower high and now is expected to move down and break the M_S1 support which will make way for the creation of the new lower low. The bearish mood is confirmed also by the strong engulfing bearish candle formed on Thursday, so we will be looking on the open of the market if we will get any opportunity to get short.
Comment:
During our Sunday Analysis, we highlighted the current downtrend which is now unfolding after having created the lower high on the declining trendline last week. Furthermore, the price action on the 4 hours chart shows that the last part of the head and shoulders pattern is being formed, so this makes our bearish expectations even stronger, so if the pattern is finished we will be trying to go short on the break of the neckline at 1.30844.
Comment:
The pair confirmed the head and shoulders pattern as it broke the neckline and now is trading below it. Test of the neckline from below now may represent a good short position taking opportunity with proper risk management.