Technical Outlook of Possible Reversal or Downside Continuation

FX:GBPUSD   British Pound / U.S. Dollar
67 0 2
Price has halted by the Yearly PP (long blue line) at
1,5988 and is forming a head & shoulders pattern with
a scewed neckline marked in the chart. It contains of
a small amount of candles in my opinion and is not too
impressive looking at first glance. But what makes me
suspicious of a reversal from here is not just the strong
downtrend, as shown by the Ichimoku indicator but the
fact that the 61,8 fib of large AB=CD hasn't yet been traded.
Most of the times this level is tested before price reverse.
Price reached 1,5874 and the 61,8 stands at 1,5819.

If price makes a strong upward move and close above the
neckline AND the white equilibrium line (Kijou sen) on
a daily basis, it will likely mark the beginning of a deeper
bounce OR reversal. But if price instead, with convincing
PA takes out current low and pierce through the 61,8 fib
we might see price complete the ABCD pattern at 1,5380.

Note that on Weekly tf SMA200 stands at 1,6014 adding
support AND the lower Kumo cloud on weekly is 1,5866.
The lower Kumo Cloud has not yet been tested. A weekly
close below the Kumo cloud will probably add fuel to the
downside, since it will give a nice Ichimoku breakout signal.
Since the projected Weekly Kumo cloud made a twist a
couple weeks back it will confirm such a Kumo break out.
A very interesting situaion on the cable that will become
clearer into the next week.
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