Head and Shoulders in GBPUSD?
After rallying for 9 straight trading days, the GBP/USD has finally pulled back. In my Charting the GBP/USD post yesterday, I showed a chart illustrating the extremeness of the move in the currency and talked about how it was prime for a correction. Typically when moves become this overextended, a correction of AT LEAST 100 pips is possible in the GBP/USD and that is what we have seen today. However, the sell-off today has formed what could be a very early Right shoulder in the GBP/USD. Take a look at the following chart and tell me if you see a head and shoulders pattern forming.