Forex Technical Analysis GBPUSD | Our expectations:
We are waiting for a test of the breakout of the Double Top formation around 1.3682 to add new short positions with a stop at 1.3815.
Breakout of the main diagonal support of the upward trend and the Double Top formation that is activated create a probability of trend reversal and possibly forming a downward tendecy.
Valid break below 200SMA increases the probability of short.
For further confirmation, we will also monitor a Japanese candlestick signal around test levels - a pin bar, an engulfing, or a dark cloud cover.
DeM (14) rotates below 0.3, which gives a probability of a correction that we will be waiting to minimize the risk.
The first target of the formation is 1.3015 - which is quite a fairer price the the current one.
Alternative Scenario: Returning the price above the base of the formation or above 1.3682 and holding above it will break the negative scenario.
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