EUR/GBP Bounces Lower - Potential Right Shoulder
Martin Janson | May 17, 2016 06:46AM ET
EUR/GBP DAILY
As predicted last week (for the full set up watch the video here ), the rate has started trading lower after a test of the former head and shoulders neckline as the new resistance.
This works as an indication that we may indeed be seeing a right shoulder of the larger head and shoulders formation.
At the moment the rate is trading around the rising gap support at 0.7830, and a daily close below this level should open up a way to April lows around 0.7740 and the potential head and shoulders neckline at 0.7700.
Only a break above 0.7930 would invalidate my immediate bearish bias for the pair.
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