After a New High being formed on a 4H chart @ 1.255 we can take a step back and see a double top
on a Daily chart
. So, what can this mean? What information can we use to support our bias? Is this a reversal or a continuation of the overall bullish
trend? On a Daily chart
we can see that price has tested the 1.251 level 4 times indicating some strength in this level. We can also spot a nice support zone
that price is currently testing which is the 1.238 level with this Daily candle included being the 7th time this level has been tested. If price continues on bearishly there are 2 more levels of support that need to be upheld one of which being the 1.235 level and the next 1.23 level. We can watch as price declines to these levels or we may see a reversal to regain some bullish
strength and retest our current high @ 1.255 level. If we breach the 1.245 level of resistance there is 100 Pips of real estate to cover for this pair assuming it reaches this level during the week can indicate a very strong pair and possibly pushing past and creating a new high. The idea is that this pair may enter a period of consolidation and/ or some bearish
movement before considering higher levels to test.
Thank you for reading.
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