Browse By

What is GBPUSD doing now? Is that a double top?

Do you see what I see in GBPUSD?

This was what I posted in Twitter.

GBPUSD question

Do you see what I see?

Two members of our community came back.

https://twitter.com/WOInvestor/statuses/394755682936688640

 

Seeing a double top

Double top chart pattern

Double top is for short but what if price is sticky to the upside?

In my opinion, learning is most effective when there is participation. From my end, at least I can see what is going on inside your mind. So I applaud these two participants.

As a summary of their feedback, both spotted double tops. This is what an envisioned double top looks like. Entirely thinkable, good symmetry, nothing wrong at all.

 

What I see is a GBPUSD building to go higher

The key consideration is that green zone I drew over there as well as the two question marks ?? right below. This green zone is a support at the moment. It is a support because:

  1. Price touched the zone twice and bounced up showing well… support
  2. The level is also a former resistance. So we are looking at the technical concept of ‘support resistance are interchangeable’.

There is one other thing. The green zone is bounded on the top by the level 1.6184. This is GBPUSD’s opening level at the start of trading on the first trading session of October. Above 1.6184, price is bullish. Below 1.6184 price is bearish. I wrote two articles about this. If you don’t know what I am talking about, please read:
Open Price as market sentiment gauge: Gold price bullish Silver not

Opening price as technical support resistance: observing price action

Basically the technical picture of GBPUSD is this:

  1. Price is above support and above its October open price so bulls are secure and happy. If you are bearish, you got some levels to beat.
  2. If the green zone can be broken so that price goes below, we very well have a double top chart pattern.
  3. If the green zone cannot be broken which we are seeing price action go sideway, this is a pair building base to go higher.
1-2-3-4 pattern

Building base

Lo and behold, see the 1-2-3-4 pattern.

Plan according based on this green zone.

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

0Shares
Loading Facebook Comments ...

2 thoughts on “What is GBPUSD doing now? Is that a double top?”

  1. Shao Guoyong says:

    Hi Th,

    1) is the w1 bull flag + 13TL still valid?

    and if so,
    2) do we need to see that price has close ( d1/w1) above the 13Tl strongly to confirm bullish trade plan as well?

    1. Soh Tiong Hum says:

      Hi Guoyong,
      Please illustrate.

Leave a Reply