We see GBPUSD breaking out downwards of a strong upwards trend over the past week.
The last time it broke downwards was on the 15th. While there was a confirmation of the breakout, it wasn't an A+ confirmation because it didn't come back to re-test the support-turned-resistance of the ascending trendline. As we saw, within 1 candle, the price broke through resistance and back to support for the next few days.
What's different this time round? Well, firstly we see a strong rejection not just once, but twice. Which resulted in a beautiful double top . Not a textbook double top , but double tops on strong ascending trendlines typically signal the end of their run and buyers losing steam to drive price level to higher highs.
1st Take Profit level should be right before 1st Fib extension, 2nd Take Profit can be before the 2nd Fib extension as shown.
Happy Trading
The last time it broke downwards was on the 15th. While there was a confirmation of the breakout, it wasn't an A+ confirmation because it didn't come back to re-test the support-turned-resistance of the ascending trendline. As we saw, within 1 candle, the price broke through resistance and back to support for the next few days.
What's different this time round? Well, firstly we see a strong rejection not just once, but twice. Which resulted in a beautiful double top . Not a textbook double top , but double tops on strong ascending trendlines typically signal the end of their run and buyers losing steam to drive price level to higher highs.
1st Take Profit level should be right before 1st Fib extension, 2nd Take Profit can be before the 2nd Fib extension as shown.
Happy Trading
