On the 4H chart we can see the "Head & Shoulders" reversal pattern confirmed last Tuesday after the breakdown of the the neckline 1.5790.
As it was expected, the pattern provided some risk for SELL-deals at 1.5870 level corresponding to the right shoulder which was tested twice tast week.
On Friday the GBP/USD pair significantly declined to the former point 1.5695 recording a daily low at 1.5661. Thustwo TP levels 1.5720 &1.5662 were hit.
The pair has established a new short-term downtrend line enabling the SELL-deals at 1.5760-1.5780 level which corresponds to the downtrend line & confluence of two fibonacci levels 61.8% & 38.2% of the depicted swings.
The eprospect targets for this scenario are located at 1.5700, 1.5650 and 1.5590 levels; the SL is to be located above the 1.5870 level.
Breakdown of the 1.5650 level ( Level of multiple previous buttoms ) will cancel the possibility of retracement towards the mentioned levels enabling the pair to resume the downside movement.
