GBP/USD Pair Forming A Double-Bottom Setup

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GBP/USD Pair Forming A Double-Bottom Setup

By The Geared Investor on October 20, 2008 | More Posts By The Geared Investor | Author's Website

The GBP/USD pair is forming a nice double-bottom setup that is also meeting resistance from a sharp decline and appears to be oversold. If this pair touches the 1.17380 mark, I will be buying and looking for a rebound of 25-100 pips. As always with a play like this, I like to set the stop-loss pretty loose at 100 or more pips, because I feel the resistance will almost always pull this setup back higher. Taking a look at the 1hr chart I have posted below, we have a nice double-bottom, with the RSI(21) moving towards the 30 barrier after several large bear candles.

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