Facts:
The price broke below the support at 188.32
GBPJPY sits below 100-period moving average from H1 interval
Head and shoulders pattern can be spotted on the M15 chart
Recommendation:
Trade: Short GBPJPY at market price
Target: 187.63, 187.32
Stop Loss: 188.77
Opinion: Looking at the GBPJPY chart, we can see that the head and shoulders pattern appeared on the M 15 interval. According to the classic of technical analysis this formation heralds a trend reversal. Following a break lower the support at 188.32, one can expect the price to move down. In addition the pair is trading below 100-period moving average from the M15 interval, which confirms bearish sentiment. Taking this into account we recommend going short GBPJPY at market price with two targets:187.63 and 187.32. We recommend also placing stop loss at 188.77.
