GBP/USD nears 1.52, double top breakout ahead?

By FXStreet FXStreet (Mumbai) – The bid tone on the USD continues to improve, pushing the GBP/USD pair lower to near 1.52 levels in the early US session.

Double top at 1.5470-1.5475

Sterling’s retreat from 1.5475 last Thursday, followed by drop to 1.54 and a failed attempt to take out 1.5470 levels today indicates a double top formation with a neckline support at 1.54. The spot currently trades around 1.5405.

It remains to be seen if the bid tone on the USD is strong enough to trigger a double top break, especially since the US economic calendar is empty. The US equity index futures currently indicate stocks are likely to open moderately higher and that could support risk currency like Sterling.

GBP/USD Technical Levels

The immediate support is seen at 1.54, under which the spot could drop to 1.5347 (200-DMA). On the other side, resistance is seen at 1.5475 (Thursday’s high) and 1.55 levels.
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Source:: FX Street