On 21 of March GBP/AUD broke through two red downtrend lines and strong reversal signal occurred. Since then the price came close to blue neckline of major inverse head and shoulders pattern. There was few days of horizontal trend marked with an ellipse, and now the price is touching the neckline fourth time. Breakout would be a strong buy signal, and one of possible ways to react to it would be to buy a call. Judging by the size of SHS pattern, uptrend should reach 1.84.
If the price bounces back instead, then of course signal to go long will not occur. But the neckline will in such case consist of four tops, so if in future price goes through it, then eventually the buy signal will be even more reliable.
