What sterling did as an SHS pattern unfolded
- Cable SHS pattern unfolded but didn't reach potential target
- EURGBP reached 50% of its potential price target
- Absence of RSI divergence indicates a lower EURGBP
However, it was expected it wouldn't reach its full theoretical price target due to resistance from the falling 200-day simple moving average. But that it couldn't even reach that level again after the throwback is a clear sign of GBPUSD weakness and the selling kicked in. Cable forming a potential double top.
A break below would confirm the double top scenario and can possibly send cable into a test of the 1.40 level.
The bearish picture will most likely be demolished by a daily close above the falling trend line.