Inverted Head and Shoulders pattern – 5 min – GBP/JPY

The Inverted Head and Shoulders pattern is a bullish reversal chart pattern, which means that if the price has been dropping and the pattern appears, the price will most likely change direction to the upside, once the pattern has been confirmed. The pattern is confirmed when the neckline is broken. In this case, the neckline is where the 173.00 level is.

Therefore, if we do see a breakout of the 173.00 level, the price may try to visit the 200 period Exponential Moving Average around the 173.30 level on the 5 minute chart.