FX.co ★ Double top in GBPUSD could imply a pull back is coming.

Green line -horizontal resistance

Blue line- support trend line

GBPUSD is trading around 1.2312 after making a double top high around 1.2440. This formation is a sign of weakness and following the rejection at the previous high we could see a pull back towards the blue upward sloping support trend line around 1.21. Forming a lower high around 1.21 is very possible for GBPUSD. Medium-term trend remains bullish as long as price is above 1.1840. Support is found at 1.2080-1.21 area where we find the blue support trend line. It is not necessary for the pull back to touch the trend line, but it is very possible for pull backs to test key support levels.