A Head and Shoulder pattern formation in a prevailing bullish trend is a sign of reversal or at least a temporary sell off as its basically a reversal formation of the existing trend.

Why I am suggesting a temporary sell off ?

Because in technical analysis if we observe any price pattern which is in a shape of reversal of existing trend it must be confirmed by a long term moving average of 200 DAY Simple Moving Average.

Here , in EUR/USD  the 2OO Day SMA is lying below the head and shoulder but in this case it will act as a good target area..

Moreover, price divergence  in comparison with MACD and a strong trend on the downside is being confirmed by the ADX with DMI indicator..

So  a sell already initiated below the neckline.

This is only a technical observation on behalf of technical analysis and not a recommendation to buy or sell the pair…

Here is the snapshot: