Even despite the fact that the price is still locked in the consolidation 0.7643 - 0.7720, we should consider short positions as the price fell down strongly on Friday. The move was on large volume, so that we should deliberate the scenario of the breakdown of the support after which we can open sales. The move should be supported by increased/large volume, that will be a stronger signal. A stop loss must be placed above the breakdown volume bar. A potential of the deal is 60-70 points.
The bottom line: short positions after the breakout of the support.
Head and shoulders pattern forming on this pair. I know it’s still early but the left shoulder and head have formed. The formation of the right shoulder is in the making.