A potential Head and shoulder has presented itself after hitting a previous Supply level above and falling over 250pips yesterday. Lower Prices are expected till the end of the week
After the Sterling gained significant momentum to rally through the long term bearish trendline on Friday. 182.50 seems to hold a brief resistance to push prices down to 181.50 for a retest of the level. After a Higher Low confirmation is seen at the level. I would enter long trade to 185.00
Price rallied last week and broke into new highs getting to 1950 before creating a pullback to the 61.8 fib. A second confirmed test at the 61.8% retracement level will create a new Lower High to push prices to previous high at 1950
GBPJPY has been seen to be struggling to break 182.50 level since first week of August where it created a buying climax. Lower Highs & Lower Lows are seen to have been forming since the buying climax at 183.20. Further lows are expected to 180.00 ultimately.
The sterling has refused lower prices below 1.2691 and create a support at that zone. Price is seen to start a healthy uptrend on intraday timeframes. A pullback to the 78.6% fib level should create buying opportunities for GBPUSD
