nice head and shoulders pattern on weakening market

hey traders,

on pound new zealand we have a very nice head and shoulders formation.
I remember that many years ago, when I just started to learn trading patterns,
I saw such illustrations of head and shoulders pattern in trading books.

Watching this pair on a 4 hour chart we see that the market has recently approached 1.94 level.
Looking left we see that it is a significant level of structure + rsi shows us clear divergence.
Market leaves us clues that with high probability we will see a retracement.

As always with head and shoulders we wait for a bearish violation of a neckline and sell only after the market closes below the line.

The initial target is based on pattern range.
Stop is above head.

Good luck!

Comment:

the market respects the support

Comment:

market is going down

Trade closed: target reached