I have identified what appears to be a head and shoulders pattern on the daily chart of eurgbp chart. the stochastics are lining up very nicely, and if validated would prove to be a nice 400-450 pip trade, as measured by the length from the top of the head to the bottom of the kneckline. I know it is customary to wait for a drop down and re-test of the kneckline, however i like to enter on the formation of the right shoulder and place my stop at break even.

re-enty shall be at daily resistance, as idicated on my lower time from charts, where I will watch for signs of today’s upward movement reversing.

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