One of the main Forex pairs that I have on my radar for the week ahead is the GBPUSD. This pair was at a decision point heading into Friday's Job Day & as a result of the pro-dollar move we officially have confirmation of a bearish simple pattern formation called the Double Top.
Despite the Double Top formation being a bearish signal, i do have my concerns about the overall price point in which it completed. Therefore I'll be looking for a break of it's lows & confirmation that we indeed have a legit bearish move. If this were to happen, it would open up about 500 pips of potential selling opportunities down to the level where I would expect buyers to be interested once more.
Needless to say this opportunity is one that is heavy on my radar as both a swing trader & a day trader.
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Akil Stokes "Win or lose tonight, my hometown of Philadelphia, PA will most likey be torn apart after tonight's Superbowl"
Also, price bounced lower on the 1.4222 resistance on the weekly time frame and is also just above the 200-period EMA (weekly). Great to see we came to the same conclusion. Hope we're right :)
Cheers
Hey Akil, if it was a Double top on the 240 would it have added to the reasoning to try and get short, or is it irrelevant to you as the daily overrules it? This could also be the same for say the 240 and the 60min charts.
Akil_Stokes
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@Kareem, Hi Kareem, no, that wouldn't have made any difference. In general, price just isn't at a level where I'm confident in seeing a continued bearish movement.
Cheers