GBPUSD Double Top Might Prompt Another Crash

Market Analysis – April 17

The GBPUSD market has been stuck between the supply zone of 1.240 and the demand zone of 1.190. A double top pattern spotted at the resistance level may foster a crash.

GBPUSD Key Levels

Demand Levels: 1.190, 1.110, 1.079
Supply Levels:1.240, 1.310, 1.370

GBPUSD Long-Term Trend: Ranging

GBPUSD remained bearish from January 2022 until October. A bullish shift in market structure engineered a reversal after the test of 1.070. The uptrend was further confirmed with the break of the resistance trendline in November. The daily candles lined up above the Moving Average line (period 20) within the Bollinger Band to indicate an uptrend.

After the double tests of the resistance level of 1.240 and the double tests of the support level of 1.190, the market has failed to deliver a breakout. The Stochastic is currently overbought at the supply level of 1.240. The upper band of the Bollinger has also pressed upon the daily candles as a resistance in the market. The double top spotted at the significant level of 1.240 is a negative signal for the buyers. The price is expected to dive off the cliff to the next demand level of 1.3100.

GBPUSD Short-Term Trend: Bullish

A breakout from the consolidation is expected to provide a clear indication of the whale’s next intention. A bullish breakout is expected to lead the market to the key level of 1.2400.

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