A potential head and shoulders pattern is forming on the GBP/USD 1-hour chart. The setup remains valid unless a strong bullish candle closes above yesterday's high at 1.2766. I'm targeting the support below the neckline and plan to add to the position if it closes below 1.2700, if the market offers me an entry opportunity.
The logical Head and Shoulders Setup Would Be:
Entry: Entering a short position on a confirmed break below the neckline at 1.2700.
TP: Below the next line around 1.2650
SL: Above the right shoulder around 1.2760.
The logical Head and Shoulders Setup Would Be:
Entry: Entering a short position on a confirmed break below the neckline at 1.2700.
TP: Below the next line around 1.2650
SL: Above the right shoulder around 1.2760.
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