This is a follow up on a trading idea that we looked at this past Thursday as "Super Thursday" pushed the GBP up to a level of previous structure resistance before reversing.
IF price action were to put in a retest of structure and once again be rejected...
THEN it would open up the door for traders to take advantage of a double top formation.
With this being a countertrend trading opportunity the target projection is simply a retest of our previous level of structure support.
Akil
For more information on this trading opportunity please use the link below to check out the video "Lessons I've Learned From Losing"
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Within an hour I'll know exactly how I want to attack this trade. A hold of structure would give me a valid double top and the violation of structure would have me looking for trend continuation opportunities to the upside. I call these levels "Decision points" because the market will tell us what move to look for next
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With the HHHC the potential double top has now been violated and I'm not longer looking for shorts until we reach the next level of previous structure resistance
thanks for sharing your thoughts Akil - always a pleasure.
i'm personally looking at slightly higher levels to short this again. if we look at the daily chart, the 147.80 to 148.20 area has been functioning as pretty decent structure/support, in the past. in fact, my 'bet' is on a 9th (!) test of the area.
see this 'journey' - :)
cheers
Akil_Stokes
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@mcpeacocks, You're welcome and thanks for the share of your trading idea!
I agree with your view on GBPJPY. We're also bearish on GBPJPY and the resistance you have identified at 147.16 is similar to the resistance we have found. We also identified a 76.4% Fibonacci retracementat that level along with a swing high resistance. Good to know we're on the same page for this trading setup.
Would you consider a pull back to the potential bearish take profit area as a short term bullish trade up to the higher resistance area for the double top ? I know your chart shows the potential pull back above this area ( current price ) but would your analysis project a bullish bounce to the higher 147 area if it continues to the 145.500 - 146.00 area first without retracement ?