GBPUSD: Looking to Confirm Reversal
Strategy: Pending Short
As we suspected, GBPUSD rallied after putting in a Bullish Engulfing candlestick pattern last week. Prices now appear to be carving a Head and Shoulders below the 1.60 figure, with confirmation on a daily close below neckline support set from January. A Spinning Top candle with bearish confirmation on the next day’s bar below resistance at 1.5891, the 38.2% Fibonacci expansion, hints a downswing from here that forms the right shoulder of the setup. Initial support lines up at 1.5780, the 23.6% expansion.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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