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Forex pairs in this Article » GBP/USD (Barcelona) - After a prolonged run to the upside, Pound's inability to break above 1.6250 on Thursday, with the subsequent violation of 1.6160, confirms a double top may be in place.

Double top in place

While the double top does not indicate bears taking immediate control of the price, it certainly provides a case to see at least a more combatant USD and a profile of consolidation in the days to come.

GBP/USD fails to rally despite 'neutral to weak' USD

One warning sign for bulls the Pound out there should be the failure by the Sterling to rally today, despite a relatively non-threatening sentiment in the market, in which other pairs such as the EUR/USD or even the AUD/USD managed to eke out some gains vs the USD, as the US government shutdown show continues.

GBP/USD bearish projection short term

Fan Yang, Founder at FXTimes notes how the recent breakout of 1.6160 completes a double top, "which can suggest at least some short-term consolidation, possibly a bearish correction", Yang said. In terms of bearish projections, Yang notes "a conservative correction scenario would be a test of the 200-hour SMA, which has been providing support as seen during the 9/24-9/26 sessions, with a breakout projection using the range of the double top targeting 1.6160 – 100 = 1.6060."
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