GBPAUD forming a Shoulder-Head-Shoulder pattern or uptrend to resuming?
If GBPAUD closes below potential Neckline it could be an SHS reversal pattern unfolding. The SHS reversal pattern will be confirmed if GBPAUD is breaking below 1.8955 with downside potential to 1.85
The RSI divergence indicates the4 potential SHS pattern is likely to unfold
However, if GBPAUD takes out peak at around 1.9392 uptrend has resumed and the RSI divergence has most likely been cancelled.
Upside potential Short- to medium term would be 1.98-2.00 – see weekly chart where a Reversed SHS pattern is unfolding its potential. Medium-to longer term upside potential to 2.00-2.05
To cancel the medium-term inverted SHS pattern a clsoe below 1.8450 is needed