Head and Shoulders on EUR/GBP

Head and Shoulders on EUR/GBP

The EUR/GBP currency pair has become stable after prolonged growth. The trading instrument is in a sideways trend. The current technical pattern signals a possible correction of EUR/GBP quotes. On the 4-hour chart, a classic "Head and Shoulders" reversal pattern, which indicates the development of a downward trend, has been formed. At the moment, the trading instrument is consolidating near the local support of 0.8875. We recommend paying attention to this situation.

If the price fixes below 0.8875, EUR/GBP sales should be considered. The nearest goal for profit-taking is the level of 0.8810. In the medium term, the EUR/GBP currency pair can reach the level of 0.8730-0.8680. Confirmations and market entry points should be looked for on lower timeframes. When following positions, we recommend using a trailing stop.

by JustForex 2020.06.09

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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