British Pound - New High For The Year

The British Pound made a new high for the year today and is quickly becoming one of the strongest currencies out there. If you look at the other major foreign currencies such as the Euro, Swiss Franc and Japanese Yen, you'll see that all of them have not made new highs for the year. The British Pound is without a doubt the currency that money appears to be moving into since this year began.

Is the British Pound Forming A Top?

The British Pound has been in an uptrend for quite sometime and I have been bullish and actually long just a few months ago, but now I see a possible change in trend taking place.

If you look at the above chart of the British Pound, you will notice a potential (and I stress the word "potential") Head and Shoulders pattern developing. In order for a sell signal to be given, the Pound would have to trade below the neckline which is around 19850...

As of now the trend is still up and there are NO signals to short, but I wanted to post this chart now (before the fact) so that those of you who follow this market can be prepared in case this market does indeed breakdown.