EUR/GBP shorting from the top of the right shoulder possible

June 16, 2016

By Admiral Markets

The EUR/GBP has formed inverted head and shoulder and traders might try to short into the top of the right shoulder, exploiting the best possible r:r. POC for counter trend trades comes within 0.9670-0.9695 (H4, bearish divergence, Pin bar, the top of the right shoulder). The first target is 0.7892. If 0.7890 is broken it will form bearish M pattern towards 0.7850 where we could see buyers due to trend confluence zone (WPP, L3, EMA89, historical buyers) – remember the pair is still in an uptrend. So pay attention to price action within these important levels and you might be able to trade it both ways.

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Article by Admiral Markets

Source: EUR/GBP shorting from the top of the right shoulder possible

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