CapMoore

Bearish Signs w Head & Shoulders Formation Untriggered

FX:GBPJPY   British Pound/Japanese Yen
87 1 0
A Head & Shoulders has been formed on H4 tf but I have some
doubts about it, since the retracement after the top did not meet
the "neckline" which makes the right shoulder lifted up. Still
at eye glance it looks nice. Furthermore, if you draw a line measuring
the distance top-neckline and project it downwards, it matches
almost pip to pip with the 61,8 fib of the whole upward move since
the 15th Oct             . This 178 level also fits well with the consolidation
high back in Sep. So the drop could then be regarded as a retest
of this previous high and a good level to look for Long positions.

With fridays PA there was a bearish TK             Cross which adds pressure
to the downside, still price bounced off nicely from the neckline and still
has to close below it to trigger this pattern. Also note that price
could bounce off of the retracement pitchfork lower band after
breaking the neckline aswell as from the Kumo Cloud. Yet. if price
shoots up from here and close above the white Kijune line, the bearish
set up comes into question and the natural approach would be to wait
for a bullish TK             cross and then enter Long for bullish continuation.
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