Forex Technical
Tweezer Tops or Double Tops??
May 12, 2010
Gary Fichardt - FxBigDog
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Chart Analysis
The GBPUSD daily is certianly bearish overall, but what traders are looking for in the market is confirmation that the correction is over.
To find signs in the market, it may come from many tools and one that many traders look for are bearish candle formation and patterns.
On the GBPUSD 240 time frame we have a candle formation and pattern formation, but one of them have not confirmed yet, while the other one has come and gone.
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Analysis
The tweezer tops have already confirmed at the opening of the next candle at the price of 1.4931. Since then the pair has dipped 100 pips. Could this mean that we are now on our way to the Objection point (Profit taken area's)? It just could be now that the low at 1.4858 was taken out. Traders are still concerned that we might close above the support at 1.4782.
Looking at the pattern formation in the form of double tops, before we can call them double tops we need the trough before the two peaks to be taken out, called the confirmation point at 1.4719. Once that is done, trader will be looking to sell off resistance on the pull backs.
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