GBPAUD at major resistance zone!

GBPAUD is at a major resistance zone on the daily chart. We can see that we even created an engulfing daily candle close today.

However, I focus more on market structure. We have seen multiple higher lows and higher highs (multiple waves) in this uptrend.

This means the trend is highly likely to reverse.

On the 4 hour chart, price here is beginning to look very promising.

We have a left shoulder, and price is holding this higher low at 1.8900.

I am watching for price to bounce here before sellers jump back in, creating our right shoulder and there by confirming a trend reversal.

Remember all a head and shoulders pattern shows us is a shift in trends going from higher lows to now lower highs which we would get when the right shoulder eventually breaks below 1.89.