FOREX: "SELL" GBP/USD double top formation threaten the lira bulls

29.08.2018 / 10:23

Rating:

GBP/USD

Timeframe H4

Technical Analysis: The price reached a diagonal resistance to the downward trend launched on July 9, 2018, forming a "double top" price formation of Fibonacci 38.2% resistance at $ 1.2929.

Indicators: The price is below 200-SMA, which supports bear scenarios; 50SMA and 100SMA support the short-term bull rally started on 15.08.2018

DeM(14) : in a sales zone with a sales signal

Entry: Aggressive entrance is at 1.28 $; the more conservative option is to break the trendline and close below 50SMA or wait for a "neckline" break at the "double peak" at 1.2799

SL: 1.2949

Alternative Scenarios: If the price goes above the "double top" formation, we will see a serious twist in the bearish picture of the pound

Trader Petar Milanov

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FOREX: "SELL" GBP/USD double top formation threaten the lira bulls

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