Our analysis starts on the weekly time frame where we can see a bearish outside bar forming at a prior S/R level, this gives us a longer term bias to the short side.
The daily chart is showing a slowing down of momentum to the upside with a series of inside bars, we can also see a Head and Shoulders pattern in play with the neckline at 116.54
As always we take our bias from the higher time frames and fine tune our entry on the lower time frames, the H4 has printed a bearish outside bar at the right shoulder of the daily head and shoulder pattern. Dropping down to the H1 we can price has closed below the 50EMA and a prior support zone has also been broken.
We will look to take an entry on a rejection of the pivot and the H1 prior support level. We’ll be looking for this to take place during the London session
Our stop will be placed above R1 and our target will be 115.34 to take into account the weekly bias.