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.


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!
9 months ago

Oh guys, found one more confluence point on the Weekly chart! Trendline resistance held and rejected :)
9 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.
GenesisCTY Anbat
9 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! :)

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