A Head and Shoulder pattern formation in a prevailing bullish trend is a sign of reversal or at least a temporary sell off as its basically a reversal formation of the existing trend.
Why I am suggesting a temporary sell off ?
Because in technical analysis if we observe any price pattern which is in a shape of reversal of existing trend it must be confirmed by a long term moving average of 200 DAY Simple Moving Average.
Here , in EUR/USD the 2OO Day SMA is lying below the head and shoulder but in this case it will act as a good target area..
Moreover, price divergence in comparison with MACD and a strong trend on the downside is being confirmed by the ADX with DMI indicator..
So a sell already initiated below the neckline.
This is only a technical observation on behalf of technical analysis and not a recommendation to buy or sell the pair…
Here is the snapshot:
