- The H4 chart may end up producing a Double Top
- Intraday price action has been bearish
- The H1 chart is about to make a bearish breakout at a parallel channel
GBP/USD Had a Double Rejection at the Same Level
The pair had a bullish day to start the week. However, it had a rejection at the level of 1.27885. This is the level where it had a rejection last week as well. Thus, if the price makes a breakout at 1.27150, the sellers may consider it as a Double Top to go short in the pair. The pair does not have enough space to travel before facing a strong level of support at 1.26200. The pair had a bounce at that level last week, which is the lower low of the last week. Simple Moving Average 30 shows that it still holds the price as a support. Nevertheless, multiple rejections at a significant level Top may attract the sellers to keep their eyes in the pair and look for more short opportunities in the coming days in case of a bearish breakout at 1.26200.
Consolidation Support Gets Broken
The H1 chart shows that the price found its resistance around 1.27885 and made a good bearish move. It then consolidated for a while and made a breakout at the consolidation support. It means the Bear may make a move from here. Intraday traders may be keen to sell the pair and drive the price towards the South further. The pair may find its next support around 1.27150. The sellers may be very interested to sell off the pair from that level as it is the support (Neckline) of a Double Top in the H4 chart. On the other hand, if the level holds the price and produces a strong bullish momentum, then the buyers may go long on intraday charts and push the price towards today’s higher high at 1.27885.
Considering these two charts, it seems that the pair may end up having a bearish or bearish-neutral day.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn