michaeldobfx

Double top and similar pattern/trend formations on the GBP/USD

Short
FX:GBPUSD   British Pound / U.S. Dollar
As you can see on the chart there, there is a clear double top pattern visible on the 1-hour chart of the GBPUSD pair. The double top pattern reflects the strong resistance area of 1.26150. In both instances, price action has rejected these levels. In the first top, the price fell all the way to the 1.23000 support level . But the overall price action, as you can see being represented by the green trendlines , is contained within a particular shape, before falling to 1.23000. The same short of shape is forming in the relation to the second top that we see, as defined by the green trendlines . My point is, the double top chart pattern and the same shape of price action (as compared to the shape of price action around the first top), means there is a possibility that the price may break down to 1.23000 in the near future. In essence, a complete repition of what we saw after the first top.