As the GBPUSD pushes higher it enters a potential reversal zone at where price came up and tested not only once but twice giving us a valid double top in that area.
Not only are we testing a structure level which has been tested numerous times before we also have a harmonic move completing up in that same zone. With the RSI going over bought and weakening on the second test creating RSI Divergence building an even stronger case for a potential retracement. As we add in some Fibonacci ratios we can see that not only is there a 1.414 Fib Extension lining up at the double top zone but we also have a 1.618 Fibonacci Inversion lining up tightly against the 1.414 giving us an overall point of confluence to potentially get short.
Not only are we testing a structure level which has been tested numerous times before we also have a harmonic move completing up in that same zone. With the RSI going over bought and weakening on the second test creating RSI Divergence building an even stronger case for a potential retracement. As we add in some Fibonacci ratios we can see that not only is there a 1.414 Fib Extension lining up at the double top zone but we also have a 1.618 Fibonacci Inversion lining up tightly against the 1.414 giving us an overall point of confluence to potentially get short.