Hi Guys,
The above GBPUSD analysis is mainly based on 1hr time frame and the 15mn timeframe is where we spotted clearly seen entry levels, stop levels and the take profits.
The pair has been having a bullish momentum in higher timeframes, however if you try to look at the small timeframes like the one our analysis based on you can identify the pair reached a resistance level and now it is consolidation in two price regions the 1.31780 to 1.31000 region this two key price levels gives us the resistance level and the support levels.
The price touched the Resistance region of 1.31780 but did not go straight into 1.31000 region, it moved into both direction and created the noticeable pattern
The M pattern, or commonly known as the Double top, with its first top around the resistance region, same thing to its second top, later on the price managed to break the formed neckline, went down a bit and came back to retest, the so called gaining momentum.
As long as the price fails to break the 1.31800 region, the total strong bias for this pair remains Bearish, the strong momentum for the bearish move will be proven by the price breaking the short term support level of 1.31000
Trade Setup: Double top, Neckline Retest
Entry for this pair should be at 1.31500
Stop loss, 20 pips above the entry 1.31700
Take profit of 50 pips below the entry 1.31000
The above GBPUSD analysis is mainly based on 1hr time frame and the 15mn timeframe is where we spotted clearly seen entry levels, stop levels and the take profits.
The pair has been having a bullish momentum in higher timeframes, however if you try to look at the small timeframes like the one our analysis based on you can identify the pair reached a resistance level and now it is consolidation in two price regions the 1.31780 to 1.31000 region this two key price levels gives us the resistance level and the support levels.
The price touched the Resistance region of 1.31780 but did not go straight into 1.31000 region, it moved into both direction and created the noticeable pattern
The M pattern, or commonly known as the Double top, with its first top around the resistance region, same thing to its second top, later on the price managed to break the formed neckline, went down a bit and came back to retest, the so called gaining momentum.
As long as the price fails to break the 1.31800 region, the total strong bias for this pair remains Bearish, the strong momentum for the bearish move will be proven by the price breaking the short term support level of 1.31000
Trade Setup: Double top, Neckline Retest
Entry for this pair should be at 1.31500
Stop loss, 20 pips above the entry 1.31700
Take profit of 50 pips below the entry 1.31000
Comment:
Trade opened, heading for the take profit!