GBPUSD Double top and 2618 trade setup
Pattern formed – Double top and 2618 trade Major resistance – 1.2435 (Jan 5th high) Cable has created a high of 1.24169 and slightly declined from that level. it’s presently trading around 1.22885. The pair face capped by 1.2435 (Jan 6th high) and any break above will take the pair till 1.2475 (61.8% retracement of 1.27780 and 1.19860).Short term trend reversal only higher than 1.2800. The minor resistance is around 1.23535. On the lower side, short term support stands at 1.2200 and any break below will drag the pair down till one.2080/1.2030/1.2000. it’s good to sell on rallies around 1.2345 with sl around 1.2435 for the TP of 1.2200/1.2090
In Other View – Buy Opportunity On GBPUSD
Price is in a correction phase after the “1st impulse wave”. Once the correction has completed, there is a high probability for “another impulse wave”. These two impulse waves can be equidistant leading to a formation of an “ab=cd” pattern. A Cypher Pattern completion can cancel the formation of the ab=cd pattern. However, since there is a higher risk taking an entry at the 0.786 fib. level for the Cypher , taking the entry at 0.886 fib level is more favorable. This gives opportunity for price to form an ab=cd pattern. Trade with care. Use a strategy you have tested and verified. 6.1.8.