GBPUSD Short Opportunity (500+ Pip Drop!)
Before anything else, I would like to make it clear that I would first like to see a pattern completion/confirmation of either the Double Top or the Head & Shoulders before entering short trades.
At the moment, price has reached former resistance area and this can be treated either as the 2nd top or the Right Shoulder. Minimum targets of each, wherever you like to look at it, will yield a nice 500+ pip drop.
Notice also that Volume is steadily decreasing indicating that buyers may not be able to sustain bullish momentum and create higher highs anymore.
At the moment, price has reached former resistance area and this can be treated either as the 2nd top or the Right Shoulder. Minimum targets of each, wherever you like to look at it, will yield a nice 500+ pip drop.
Notice also that Volume is steadily decreasing indicating that buyers may not be able to sustain bullish momentum and create higher highs anymore.
Notice that volume on that last bullish candle is relatively high compared to others.