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Daily Forex Technicals |
Written by FXTimes |
Jan 27 12 16:14 GMT
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GBP/USD Forms Double Top as Market Breaks 1.5660
The GBP/USD has been resilient, but the bull run since 1/27 Asian-European session could not clear the 1/26 high at 1.5733. After the US stock market opened at 9:30 AM EST, the GBP/USD started to turn around, and in the following hour candle is falling back toward the previous session’s lows. The strong price action suggests the market could be attempting a double top, with the base at 1.5660.
If the 1.5660 level fails as support, the market opens up 1.5632, 50% retracement and 1.5608, 61.8% retracement. A return to these levels will be a test of a broken resistance as support. Below 1.56, we are in a more significant corrective decline, because that would also break below the rising channel support.
The 4H chart shows the next level of support below 1.56 near 1.5540, which is near 38.2% retracement. 1.55 is also a psychological pivot just above the 1.5482, 50% retracement level and a previous resistance pivot.
As I wrap up this article, the GBP/USD is cracking 1.5660, forming the double top.
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