GBPUSD forming a double top before the expected default of U.S
Updated
Hey everyone,
Default on debt of the US concerns because we're amid political tensions in the congress and the maturity date is approaching.
Recap : Democrats want to rise the debt ceiling VS Republicans want to lower the expenses.
The failure to reach an agreement before maturity date may provocate a shock wave on the market.
As we all know, the dollar tend to rise in value when in time of uncertainty.
on a purely technical point of view, we can observe that the second peak of the doble top is formed. As the 1.24 level was strongly rejected again and price action analysis provide us the confirmation that trend is reversing : inside bar pattern breaking down.
So the bulls may have lost power over the market from here, and we should see the bearish momentum increasing.
This scenario is confirmed by the MACD indicator as well, which formed a bearish divergence.
Hence a bearish scenario on GBPUSD is expected within the next days and an optimal entry point will be here. I expect the price to fall sharply to 1.18 level breaking the neckline and causing panic over the market which will trigger a massive bearish sentiment that will lead the price to reach the target of 1.11000 .
Give a thumbs up if you agree !
Good luck ! have a nice week
Default on debt of the US concerns because we're amid political tensions in the congress and the maturity date is approaching.
Recap : Democrats want to rise the debt ceiling VS Republicans want to lower the expenses.
The failure to reach an agreement before maturity date may provocate a shock wave on the market.
As we all know, the dollar tend to rise in value when in time of uncertainty.
on a purely technical point of view, we can observe that the second peak of the doble top is formed. As the 1.24 level was strongly rejected again and price action analysis provide us the confirmation that trend is reversing : inside bar pattern breaking down.
So the bulls may have lost power over the market from here, and we should see the bearish momentum increasing.
This scenario is confirmed by the MACD indicator as well, which formed a bearish divergence.
Hence a bearish scenario on GBPUSD is expected within the next days and an optimal entry point will be here. I expect the price to fall sharply to 1.18 level breaking the neckline and causing panic over the market which will trigger a massive bearish sentiment that will lead the price to reach the target of 1.11000 .
Give a thumbs up if you agree !
Good luck ! have a nice week
Trade active
i added shorts to my previous position
Note
more than 300 pips of profit so faralmost reached the neckline
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