GBP/USD: Approaching Double Top

I normally write about the Eur/Usd but here is a great opportunity that I could not pass up sharing with you all. There is a double top chart pattern forming.

The resistance level of 1.6125 on Sept 30 2009 is being approached right now. This is a key resistance level as the Pound attempts to break out of the current down trend that it is currently trading in. If this fails the price could go all the way down to 1.5850 and beyond.

If the price breaks through the top we could see a target of 1.6400.

4hr chart * note click the chart to learn a great trading system.

Trade Setup

If the pair bounced off of the double top I would look to short enter around 1.6036 which is just below the previous up ward moving candle.

Put a stop 7 pips above the resistance level of 1.6125 and have leave a target of 1.5850

Keep good money management and you could have a profitable trade.

 

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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