GenesisCTY
Short

GBPUSD: High Probability Double Top?

FX:GBPUSD   British Pound/U.S. Dollar
Hey gang! Found quite a high probability Double Top right here on the Daily Chart!

1.46664 Major Resistance level has held and a bearish bar has come!

What influenced my decision:

1) Weekly chart shows a downtrend
I will only take trades that follow the general trend.

2) Price retracement has reached the previous low of the impulse wave on the Weekly Chart (1.46664)
This represents a strong resistance level

3) Major Resistance level held at the same level, creating a double top formation.

NOTE:

Guys, please, wait for the price to break through the neckline first. Many traders always seem to trade before it breaks due to greed and end up losing.

A Double Top formation only has about a 35% chance to break through the neckline. When a Double Top breaks through, it results in a 73% success rate.

Which is better? I think its pretty obvious.

Good luck guys! May the pips be with you!
GenesisCTY
6 months ago
snapshot


Oh guys, found one more confluence point on the Weekly chart! Trendline resistance held and rejected :)
Reply
Anbat
6 months ago
1.40000 is major support bottom for pair- next month/June appears BULLISH from my viewpoint. Positive news coming out next month, will cause PA to breakout of top resistance.
Reply
GenesisCTY Anbat
6 months ago
Hey! Great observation! Thank you for the info!

I observed the double top, the range from the neckline to the top of the double top is about 350 - 380+ pips est. (different brokers, prices will differ a little bit) , which is about the same length from the neckline to the 1.39000 - 1.40000.

The double top could still be viable (assuming it breaks through neckline), and it will probably end around 1.39000-1.40000, just as you said! :)

Genesis
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