Back
3 Oct 2013
GBP/USD prints double top, bearish protection to 1.6006?
FXstreet.com (Barcelona) - After a prolonged run to the upside, Pound's inability to break above 1.6250 on Thursday, with the subsequent violation of 1.6160, confirms a double top may be in place.
Double top in place
While the double top does not indicate bears taking immediate control of the price, it certainly provides a case to see at least a more combatant USD and a profile of consolidation in the days to come.
GBP/USD fails to rally despite 'neutral to weak' USD
One warning sign for bulls the Pound out there should be the failure by the Sterling to rally today, despite a relatively non-threatening sentiment in the market, in which other pairs such as the EUR/USD or even the AUD/USD managed to eke out some gains vs the USD, as the US government shutdown show continues.
GBP/USD bearish projection short term
Fan Yang, Founder at FXTimes notes how the recent breakout of 1.6160 completes a double top, "which can suggest at least some short-term consolidation, possibly a bearish correction", Yang said. In terms of bearish projections, Yang notes "a conservative correction scenario would be a test of the 200-hour SMA, which has been providing support as seen during the 9/24-9/26 sessions, with a breakout projection using the range of the double top targeting 1.6160 – 100 = 1.6060."
Double top in place
While the double top does not indicate bears taking immediate control of the price, it certainly provides a case to see at least a more combatant USD and a profile of consolidation in the days to come.
GBP/USD fails to rally despite 'neutral to weak' USD
One warning sign for bulls the Pound out there should be the failure by the Sterling to rally today, despite a relatively non-threatening sentiment in the market, in which other pairs such as the EUR/USD or even the AUD/USD managed to eke out some gains vs the USD, as the US government shutdown show continues.
GBP/USD bearish projection short term
Fan Yang, Founder at FXTimes notes how the recent breakout of 1.6160 completes a double top, "which can suggest at least some short-term consolidation, possibly a bearish correction", Yang said. In terms of bearish projections, Yang notes "a conservative correction scenario would be a test of the 200-hour SMA, which has been providing support as seen during the 9/24-9/26 sessions, with a breakout projection using the range of the double top targeting 1.6160 – 100 = 1.6060."